Dince the 2010-2013 crisis, the euro zone has successfully conducted “defensive” policies, but which we call “easy” policies, based on monetary expansion and fiscal deficits. However, these policies cannot be used permanently and the euro zone will now have to move on to much more difficult policies, which correct its structural handicaps. The real test of the eurozone’s ability to have a prosperous economy will be when it moves from easy policies to hard policies.
Let’s start by recalling these “easy defensive” policies implemented since 2014. First of all, these are very expansionary monetary policies, with very low interest rates (much lower than long-term growth) and, at.. .