Growth in the Eurozone gaining “momentum”

European countries are showing signs of strengthening economic growth, according to a new report from the OECD.

In a statement released yesterday, the OECD said that: "In Italy and France, the signs of a positive change in momentum, which were assessed as tentative in March, have now been confirmed."

Germany, the region’s largest economy, has also seen a positive change.

The news comes as a relief to European economists, following a bout a particularly sluggish growth and deflation warnings. This suggests that the European Central Bank’s recently-launched a €1.1tn bond-buying scheme is having some effect.

Financial stimulus programs will not always boost slow economies, however, and policymakers must be sure to analyze the factors preventing growth. Edward P. Lazear writes about the different between structural and cyclic recessions, describing how structural problems are not likely to be overcome by monetary policies.

Read more here.

Related articles:
Structural or cyclic? Labor markets in recessions, by Edward P. Lazear
How labor market institutions affect job creation and productivity growth, by Magnus Henrekson