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European Commission sees permanent decline in euro area’s potential output

a name=”2009-07-05_ec_top”> [Skip to the end] Potential output is what you can produce with ‘everyone working’ in the broad sense, and productivity increasing as quickly as possible, unconstrained by policy. The monetary system is always ready and able to be adjusted to allow this to happen. It does help to have an administration that understands the monetary system, however. Since [...]
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