I was dipping into [amazon_link id=”052149964X” target=”_blank” ]Economic Growth in Europe Since 1945[/amazon_link], edited by Nick Crafts and Gianni Toniolo, and published in 1996, interested to see what difference of perspective the intervening 16 years and Great Financial Crash have brought. The collection very much focuses on the insights of endogenous growth theory, on human capital formation and technology transfer. However, the editors’ essay notes that these factors do not tell the whole story of the Golden Age, les Trentes Glorieuses. They highlight also trade liberalization. And add, interestingly:

“A full understanding of Europe’s Golden Age of economic growth requires a subtle appreciation of the impact of policy and institutions on incentives to invest and obstacles to complete catching up.”

The subsequent chapter by Barry Eichengreen emphasises labour market institutions as the main explanation for differences between European countries, while Mancur Olson looks at Eurosclerosis through the lens of rent seeking. Both actually stand the test of time pretty well. Worth revisiting now that growth is the only hope of a benign path out of the mess we Europeans are in now.

[amazon_image id=”052149964X” link=”true” target=”_blank” size=”medium” ]Economic Growth in Europe since 1945[/amazon_image]