The expectation that the world economy will return to a healthy and stable growth path once the dust of war in the Middle East has settled is unrealistic to begin with. Obviously, the workload for the world economy to return to healthy growth will be high on both sides of the Atlantic.
BIS Review 19/2003  1  In the euro area structural weaknesses have been building up for more than a decade. They are well known, as is the adequate therapy. Labour market inflexibility is the core European weakness. In a currency union, market flexibility is all the more crucial as exchange rates can no longer cushion asymmetric shocks.