European leaders must pay close attention to the “austerity vs. growth” debate. ++ Although there is much condemnation of Europe’s austerity cure, critics are unsuccessful in finding solutions to fund growth. ++ Debtors must become more competitive in the global market. ++ Spain cut unit labor costs by 8.5%, compared to its European counterparts, between 2008 and 2011. ++
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Japan’s experience in the 1990s is no longer seen simply as a terrible recession but has become an example of how to recover from the current financial crisis. ++ What conclusions can be drawn to rescue our economies? ++ The balance-sheet deflation inside the US is far shallower than in Japan in the 1990s, but the global implications of the current crisis are far greater. ++ The US will not be
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