We also need them now because these are the reforms that can credibly raise expectations of a higher income in the future. And if income is expected to be higher tomorrow, investments will be made today. Reforms that increase supply will thus support demand as well. In some areas in need of reform, it is the European Commission who is in the driver’s seat.
As acknowledged in various G-20 communiqués, growth has been neither strong, nor sustainable nor balanced. Shortly after the crisis and the announcement of the G-20 Framework, economists at the Bank of Canada decided to use their global model to examine three very different scenarios for how the global economy might unfold.