With the nominal neutral interest rate lower than in the past, and with policy options being more limited if conditions deteriorate than if inflationary pressures accelerate, the asymmetry in riskmanagement considerations counsels a cautious and gradual approach. References Baily, Martin Neil, James Manyika, and Shalabh Gupta (2013). “U.S. Productivity Growth: An Optimistic Perspective (PDF),” International Productivity Monitor, vol. 25 (Spring), pp. 3-12.
Combining the deepening and widening of the European Union In addressing this altogether intelligible concern that the greater size and heterogeneity of an enlarged European Union might lead to a standstill in integration or even an unravelling of the degree of deepening achieved so far, I would suggest starting with a certain amount of “introspection” aimed at assessing the depth of integration in the EU today.