Monday, February 12, 2007

Phelps on Europe

Edmund Phelps published an article in the WSJ on the three big continental European economies - Germany, Italy, and France - and their problems. According to him they lack economic dynamism.

He asserts that after WW2 the three countries merely caught up with the US, but did not develop further.

Phelps states that they lack innovation. I think this totally neglects the fact that eg German engineering is still highly regarded, hence the large exports.

The three big Continentals might lack some American spirit, but they can be innovative nevertheless.

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