Anyone with half a brain knows that when unemployment is high and economic growth still painfully slow, cutting the deficit too much would make a bad situation even worse.
A higher inflation rate of three to five percent produces better outcomes by lowering the unemployment rate and creating labor market bargaining conditions that help connect wages to productivity growth.
A financial transactions tax is more than just an issue of fairness. It is also likely to boost economic growth by eliminating waste in the financial sector.
When the European authorities talk of structural reforms, they the American model, in which pension systems, health, education are largely characterized by market’s dominance.
