Perhaps more importantly, a series of clear constraints to growth in traded goods sectors have been identified for some years and new ones have emerged to frustrate sustained growth in output. The capital flows challenge needs fresh thinking.
In the past, Germany, Ireland and the UK have all successfully used such incentives to bring about these reforms.7 The second area where we have learned lessons from the crisis is the scope of reforms. Much of the focus in the reform debate has been on product and labour markets.