The reform club; Free exchange  

Oleh:

[s.n]

Jenis: Article from Bulletin/Magazine
Dalam koleksi: The Economist (http://search.proquest.com/) vol. 404 no. 8803 (Sep. 2012), page 76.
Topik: Economic Crisis; Central Banks; Bond Portfolios; Portfolio Management; Regulation; Monetary Policy

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Perpustakaan Pusat (Semanggi) Nomor Panggil: EE29.73 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Throughout the euro crisis, policymakers have been desperate to buy time so that the therapies prescribed for troubled European economies can be administered. The European Central Bank's new bond-purchasing strategy has ushered in another period of respite, which with luck will last longer than previous ones. There are two main courses of treatment for peripheral economies. One is austerity, to get public finances under control. The other is structural reform, to boost growth. Structural reform comes in many guises. It can mean opening up product markets to more competition (Italy is starting to loosen the strict licensing system that has long shielded pharmacists from competition). Or it can involve making labour markets more flexible (Spain is trying to narrow the divide between well-protected permanent staff and lightly protected temporary ones). Such reforms are less controversial than austerity. But are they the right remedy in bad times? Over the long term, higher productivity growth and better-functioning labour markets are vital if economies in southern Europe are to regain the competitive ground they lost in the first decade of monetary union, when their unit labour costs soared relative to those in northern countries like Germany.

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