Eurozone economy Cut us some slack

Is the eurozone economy underperforming its potential? The answer, of course, depends on what its potential is. Economists have long thought it is capable of growing at 2-2.5% annually over the long run. But this year, it is expected to grow by just 1.3%, bringing the average rate for the last three years to a meagre 1.2%. This apparent slack in the economy is one of the main arguments for the European Central Bank’s to cut interest rates. But what if economists have seen too much potential for ...