In principle, current account imbalances can be desirable, if they channel funds across the world to their most productive use. But in the years prior to the crisis imbalances were a symptom of economic distortions: in some countries asset price bubbles developed and household debt levels rose beyond sustainable levels.
Job polarization will increase the demand for low-wage jobs, like many services, but will only create jobs if they are not priced out of the market.9 Last but not least, Nordic comprehensive social security is an important part of our growth policies, since it makes structural change more socially acceptable.