Mario Draghi, for example, reported in Davos earlier this year that a “major, major credit crunch” had been avoided in Europe, following the € emergency loans to Eurozone banks in December 2011.
While it is a difficult task to discover potential demand that cannot be easily discerned, transforming such potential demand into actual demand and linking this with a rise in productivity is something that firms should perceive as a challenge and that would provide one approach to innovation, as I will explain later.