The Economic Future of Europe
Olivier Blanchard ()
Journal of Economic Perspectives, 2004, vol. 18, issue 4, 3-26
After three years of near stagnation, the mood in Europe is definitely gloomy. Many doubt that the European model has a future. In this paper, I argue that things are not so bad, and there is room for optimism. Over the last thirty years, productivity growth has been much faster in Europe than in the United States. Productivity levels are roughly similar today in the European Union and in the United States. The main difference is that Europe has used some of the increase in productivity to increase leisure rather than income, while the United States has done the opposite. Still not everything is well. Unemployment is still high, and Europe suffers from inefficient regulation. Here also however, there is more action than often perceived, and a wide ranging reform process is taking place. This process is driven by reforms in financial and product markets. Reforms in those markets are in turn putting pressure for reform in the labor market. Reform in the labor market is slowly taking place, but not without political tensions. These tensions dominate the news; but they are a symptom of change, not a reflection of immobility.
Note: DOI: 10.1257/0895330042632735
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (225) Track citations by RSS feed
Downloads: (external link)
Working Paper: The Economic Future of Europe (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:aea:jecper:v:18:y:2004:i:4:p:3-26
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Economic Perspectives is currently edited by David H. Autor
More articles in Journal of Economic Perspectives from American Economic Association Contact information at EDIRC.
Series data maintained by Jane Voros ().