Does Europe Grow More Slowly Than the United States?
Saturday, Jan. 4, 2020 12:30 PM - 2:15 PM (PDT)
- Chair: Dominick Salvatore, Fordham University
Why Does Europe Grow More Slowly Than the United States? Comparisons Before and After the Global Financial Crisis
AbstractThe paper reviews US and EU growth, employment and inflation in the 1950-2019 period and argues that the EU made great efforts in keeping up in economic growth with the US in at least three broad strategic rounds: the formation on a customs union to stimulate growth via trade; the formation of a common currency for a subset of the trading partners to increase efficiency and growth (pre-crisis), and finally via the recent efforts of its common monetary policy. The slower growth in EU compared to that of the US may be due both to structural issues such as competition in output markets, labor markets, banking and regulation but also to serious constraints that exist in the EU monetary policy with its emphasis containing on inflation and harmonizing the fiscal policies of its members.
Integration of Capital Markets and Economic Growth in the European Union
AbstractThis paper argues that deep, integrated and resilient equity and bond markets are essential for accelerated economic growth of the EU members. The empirical analysis aims at identifying phases and cycles in the integration of the EU-wide capital markets by employing multiple breakpoint and Markov switching regressions on daily series of equity market returns and sovereign bond yields. The analysis shows that advanced integration phases are associated with a faster economic growth. The paper concludes that further integration of capital markets will expand access to capital funds, improve the allocation of capital and help mitigate market and systemic risks. Therefore, the implementation of the Capital Market Union is an important step towards achieving financial stability and supporting a counter-cyclical, sustained economic growth.
When and How Will Europe's Growth Crisis End?
AbstractRecovery from the recent global financial crisis and "great recession" has been slower than after previous recessions in most advanced countries and areas, especially Europe. But Europe's growth problem is structural in character and started much earlier. This paper analyzes the structural causes of the European growth problem, evaluates the policies that Europe adopted to overcome it, and concludes that even with the appropriate policies, the prospects for accelerating growth in Europe will be difficult, especially in the context of the current US-China trade war.
- E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy
- F4 - Macroeconomic Aspects of International Trade and Finance