While the economy is growing at a rate of 1.6%, our fiscal restraint measures will reduce GDP by 1.75% in 2013 explained William Dudley, President of the Federal Reserve Bank of New York, in a speech given on March 25th.

FORBES: It's Time To Take Some Money Off The Table

In others, politicians are still terrified that their car-owning voters will savage any government that tries to introduce direct measures of restraint.

ECONOMIST: Jam today, road pricing tomorrow

Without the ability to devalue, the restoration of competitiveness requires painful austerity measures and wage restraint.

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Such measures should raise productivity growth, but wage restraint will still be needed to restore competitiveness.

ECONOMIST: The European Central Bank