A now repeated lament from central bankers is that economic policy makers across the world have not used the present global financial crisis to address the structural reforms required to drive higher growth.
Many economists ask the question ‘why does the country not introduce seemingly obvious structural reforms to boost growth and employment?’ The answer to this question is complex and relates to the power dynamic in a country. Structural reforms often have winners and losers. The losers are often diffused and dispersed, and therefore not able to mobilise to demand structural change.