A new book called “Jobs and Growth: Supporting the European Recovery,” authored by IMF staff, analyzes today’s challenges head-on and proposes a roadmap for the continent’s recovery.The book and its roadmap should contribute to the ongoing debate around these pressing issues.
The book’s analysis is informed by the relationship between jobs and growth, which is the proverbial two-way street. When unemployment is high, growth is slow because people consume less, and firms invest and hire less. This means that the most effective way of boosting jobs is to get growth going again.
Roadmap for recovery—three priorities
- For the euro area, enhancing the institutional framework of the monetary union is urgent. Putting in place all of the elements of a banking union would be an excellent place to start.
- As a second priority, households, corporates, and ultimately also the public sector need to reduce high debt levels.
- Turning to the third…
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