Instead, noting that the variance of the economic shocks implied by their models for the 1970s was much higher than the variance of shocks in the more recent period, they embrace the good-luck explanation of the Great Moderation.
We should make better use of common resources, to encourage reforms and restore the dynamism of our economies. In other words, we should aim to build a strong and deep economic and political union in Europe, which would be to the benefit of all members of the single currency.