Publication

This commentary looks at the reasons behind the difference in economic growth levels in Europe and the US during the recovery from the 2008 global financial crisis. Overall, the author argues that it was not excessive austerity or prudence on the part of the European Central Bank that has led Europe to lag behind the US in growth levels. Rather, Europe's slow recovery can be attributed to a number of structural factors, the most important being that European economies have been having more difficulty in working off their excess debts.