Wherein Do the European and American Models Differ?
Particularly in the 1990s economists in America have been surprised by how good or how lucky has been our macro performance compared to our peers abroad. We pinch ourselves and ask: "What went right?" And, by implication, authorities in Europe must be looking in their mirror and wondering: "Where had we been going wrong? What one fool can do, why can't another?" While Europe has attained and maintained two-digit rates of unemployment, in America there have been created tens of millions of new jobs. And for the most part this has not been bought at the expense of accelerating price inflation and a short-lived full employment.
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