The aim of “structural reforms” in Europe should therefore be to raise business dynamism and productivity, not to cut wages below the levels consistent with productivity, in an elusive search for temporary gains in market shares.4 Only in this way can reforms be a positive- rather than a zero-sum game. Different countries require different solutions.
14 Thirdly, and more troubling, the presence of a low-risk digital currency could increase the probability and severity of bank runs during periods of system-wide instability—depositors could easily, and remotely, transfer large deposit holdings to a central bank digital currency during any wide-spread period of perceived financial instability.