By Hugh Stephenson
Seven of the major economists in Europe and the USA supply their provocative perspectives on key concerns dealing with the way forward for Europe. the subjects lined diversity from why Europe's development fee is under America's and the adventure of the Eurozone to the influence of schooling at the economic system and the looming pension drawback.
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Those achievements have exceeded expectation. Notes 1. A. Mundell, ‘A Theory of Optimum Currency Areas’, American Economic Review, vol. 51 (1961), pp. 657–65. 44 Peter B. Kenen 2. M. Corden, Monetary Integration, Essays in International Finance 93, Princeton, NJ: International Finance Section, Princeton University. 3. B. Kenen, ‘The Theory of Optimum Currency Areas: An Eclectic View’, in Mundell and Swoboda (eds), Monetary Problems of the International Economy, Chicago: University of Chicago Press, 1969, pp.
If Europeans choose both to produce less and to consume less, that has no consequences for competitive sustainability. Provided Europeans understand the consequences of their trade-offs – for instance, that shorter hours mean lower GDP per capita – there is nothing unsustainable about that choice. But choices could become unsustainable, if based on inconsistent assumptions: for instance, on decisions to do less work without accepting the consequences of lower income. And there is certainly one European social choice that is unsustainable – the current combination of birth rates, retirement ages and explicit or implicit pension promises.
2 provide in summary form the key data for Japan and the USA over half a century. 1 Key economic trends in Japan: 1950 to 2002 Sources: UN Common Database and European Commission; UN Common Database and Bloomberg. 1 per cent (year on year) in 2003. 0 per cent. The euro is at its strongest since its introduction on 1 January 1999.