They argue, instead, for combining the IO approach with the specialized learning of finance, a part of economics that has grown so important precisely because of the manifold ways in which the financial sector differs from other industries. Scale and scope economies in the financial sector There are few topics within IO more familiar than that of scale and scope economies.
Unfortunately, economic policies cannot do much to reduce the effects of demographics and oil prices on growth. Luckily, however, there are also issues that economic policies can deal with in order to increase Europe's growth potential. Let us now turn to those.