Over the last year, we have seen a notable re-emergence of concerns with regard to the medium- and long-term economic outlook. In its latest forecast, the IMF (2018) draws attention to “powerful structural headwinds acting on potential growth” that have only temporarily been offset by cyclical factors. Likewise, the European Commission (2018) projects moderate economic growth that faces significant downside risks, despite supportive financing conditions. A range of structural factors explains Europe’s relatively low rate of productivity growth and overall potential growth. Well-known and relatively well-studied is ... (full story)