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Is Slow Economic Growth the ‘New Normal’ for Europe?

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  • Nicholas Crafts

    (University of Warwick)

Abstract

This paper considers future European growth prospects in the light of a new productivity paradox, namely, the co-existence of a productivity slowdown and exciting new technologies. Several potential explanations are reviewed. It is argued that while some are unpersuasive it is too soon to be sure which carry the most weight. This has the implication that while the slowdown is real, it is not necessarily permanent. A key, hotly disputed issue is the future economic impact of technological progress on which forecasts differ dramatically. Supply-side reform could have a strong positive effect, but this is not likely to happen.

Suggested Citation

  • Nicholas Crafts, 2017. "Is Slow Economic Growth the ‘New Normal’ for Europe?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(3), pages 283-297, September.
    • Handle: RePEc:kap:atlecj:v:45:y:2017:i:3:d:10.1007_s11293-017-9551-9
    DOI: 10.1007/s11293-017-9551-9
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    References listed on IDEAS

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    Cited by:

    1. Alberto Botta & Ben Tippet, 2020. "Secular stagnation and core-periphery uneven development in post-crisis eurozone," Working Papers PKWP2002, Post Keynesian Economics Society (PKES).

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