DP973 Institutions and Economic Growth: Europe After World War II

Author(s): Barry Eichengreen
Publication Date: June 1994
Keyword(s): Europe, Growth, Institutions
JEL(s): N0, N1, N2
Programme Areas: International Macroeconomics, Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=973

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.