Working Paper: CEPR ID: DP973
Authors: Barry Eichengreen
Abstract: European economic growth in the quarter of a century that ended in 1973 outstripped growth in any period of comparable length before or since. The elements of Europe's growth miracle -- wage moderation, high investment and rapid export growth -- were delivered by a tailor-made set of domestic and international arrangements -- on the domestic side the social market economy, on the external side international agreements and supranational institutions -- that solved problems of commitment and cooperation that would have otherwise hindered the resumption of growth.
Keywords: Europe; Institutions; Growth
JEL Codes: N1; N2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Institutions (D02) | Wage Moderation (J38) |
| Wage Moderation (J38) | Increased Investment (E22) |
| Institutions (D02) | Increased Investment (E22) |
| High Investment (G31) | Economic Growth (O49) |
| Export Growth (O49) | Investment Allocation (G11) |
| Investment Allocation (G11) | Economic Growth (O49) |