At the same time, the euro area’s potential for higher sustained growth and it capacity to effectively absorb economic shocks can be further enhanced by the implementation of appropriate structural reforms that can increase productivity and employment growth and improve market efficiency and flexibility. In my presentation, I examined and assessed the links between education and the growth performance of our economies.
Through this process, wealth is created, incremental step by incremental step, as high levels of productivity associated with innovative technologies displace less-efficient productive capacity. The model presupposes the continuous churning of a flexible competitive economy in which the new displaces the old.