But the question we have to ask ourselves is: “where would that take us?” The competitive edge some economies enjoy did not come for free. It is the result of often painful adjustments among workers and within firms. Giving part of it up to ease the pressure on deficit countries might make these countries better off in relative terms.
But would it not make everyone poorer in absolute terms? 2  BIS central bankers’ speeches  We have to acknowledge that Europe is not an island but part of a globalised world. And at the global level, we are competing with economies such as the United States or China.