While appropriate and credible policies are the basis for economic growth, they need to be backed by high-quality institutions, including ethical standards in corporate governance. However, given the diversity of institutional settings and the success of different economic strategies among G-20 countries, it is acknowledged that there is no single template for strong long-term growth.
The euro area provides a particularly clear example of this. In the second half of 2011, banks in the euro area became increasingly unwilling to lend to each other.