IDEAS home Printed from https://ideas.repec.org/p/iie/piiebs/piieb14-5.html
   My bibliography  Save this paper

Rebuilding Europe's Common Future: Combining Growth and Reform in the Euro Area

Author

Listed:
  • Adam S. Posen

    () (Peterson Institute for International Economics)

  • Ajai Chopra

    () (Peterson Institute for International Economics)

  • Angel Ubide

    () (Peterson Institute for International Economics)

  • Paolo Mauro

    () (Peterson Institute for International Economics)

  • Jacob Funk Kirkegaard

    () (Peterson Institute for International Economics)

  • Nicolas Veron

    () (Peterson Institute for International Economics)

Abstract

Europe must adopt policies to grow and reform at the same time to reverse its downward economic slide, excessively low inflation, high unemployment, and the risk of a lost decade or more. Seven years after the start of the global financial crisis in 2007, the prospect of secular stagnation threatens to fracture the political and social fabric of the euro area. This PIIE Briefing of six essays by economists at the Peterson Institute for International Economics offers a roadmap for policymakers to guide Europe out of its current self-defeated policy mix. The main message of this volume is that monetary and fiscal policies must more actively work in tandem with productivity-enhancing structural reforms (such as deregulation and deepening the single market) to shift the euro area toward a path of higher growth and stable prices. The policies recommended here are well short of revolutionary, but they would replace the politically accepted but dangerous narrative of fiscal austerity, internal devaluation, and moral hazard, which has led to the current economic malaise.

Suggested Citation

  • Adam S. Posen & Ajai Chopra & Angel Ubide & Paolo Mauro & Jacob Funk Kirkegaard & Nicolas Veron, 2014. "Rebuilding Europe's Common Future: Combining Growth and Reform in the Euro Area," PIIE Briefings PIIEB14-5, Peterson Institute for International Economics.
  • Handle: RePEc:iie:piiebs:piieb14-5
    as

    Download full text from publisher

    File URL: https://piie.com/publications/piie-briefings/rebuilding-europes-common-future-combining-growth-and-reform-euro-area
    Download Restriction: no

    References listed on IDEAS

    as
    1. Dolls, Mathias & Fuest, Clemens & Neumann, Dirk & Peichl, Andreas, 2014. "An Unemployment Insurance Scheme for the Euro Area," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100572, Verein für Socialpolitik / German Economic Association.
    2. Grégory Claeys & Zsolt Darvas & Guntram B. Wolff, 2014. "Benefits and drawbacks of European Unemployment Insurance," Policy Briefs 847, Bruegel.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Angel Ubide, 2015. "Stability Bonds for the Euro Area," Policy Briefs PB15-19, Peterson Institute for International Economics.
    2. Kleczka, Mitja, 2015. "Monetary Policy, Fiscal Policy, and Secular Stagnation at the Zero Lower Bound. A View on the Eurozone," MPRA Paper 67228, University Library of Munich, Germany.
    3. Jorg Bibow, 2015. "The Euro's Savior? Assessing the ECB's Crisis Management Performance and Potential for Crisis Resolution," Economics Working Paper Archive wp_845, Levy Economics Institute.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iie:piiebs:piieb14-5. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peterson Institute webmaster). General contact details of provider: http://edirc.repec.org/data/iieeeus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.