In the business daily Les Echos US economist and Harvard professor Kenneth Rogoff, from 2001 to 2003 Economic Counsellor and Director of the Research Department at the International Monetary Fund, argues that Europe is more in need of reform than of Keynesian recovery programmes to get out of the financial and economic crisis: "Some commentators have savaged Europe's policymakers for not orchestrating as aggressive a fiscal and monetary policy as their US counterparts have. Why else is Europe suffering a deeper recession than America, they complain, when everyone agrees that the US was the epicenter of the global financial meltdown? But these critics seem to presume that Europe will come out of the crisis in far worse shape than the US, and it is too early to make that judgement. ... The real question is not whether Europe is using sufficiently aggressive Keynesian stimulus, but whether Europe will resume its economic reform efforts as the crisis abates. If Europe continues to make its labour markets more flexible, its financial market regulation more genuinely pan-European, ... growth can pick up again in the wake of the crisis." (13/07/2009)
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