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"The potential rate of growth certainly could be higher in Europe," Mr. Duisenberg said today.
The IMF recently cut its estimate of the country's potential rate of growth to 2%.
Even so, euro-area growth is now above its supposed potential rate of around 1.8%.
They also appear to have reduced their estimates about the nation's long-term potential rate of growth without inflation, often described as the economy's speed limit.
European policy makers confidently predicted last spring that the region would grow at about its long-term potential rate of 2.5percentt.
"Given the stakes they have, the investment they have made in this convention in Philadelphia is very modest, given the potential rate of return," Mr. Magleby added.
That is the effect of the crisis on America's potential rate of growth itself.An economy's long-term speed limit (its "trend" or "potential" rate of growth) is the pace at which GDP can expand without affecting unemployment and, hence, inflation.
Only in the long run do supply-side reforms have a chance of boosting the economy's potential rate of growth.
Earlier this month, Winspear moved to back up that contention, saying that under new projections the size of its ore reserves had tripled and the potential rate of production would double.
The Economist's monthly poll of forecasters now expects growth this year and next to average 2.2%, well above most estimates of Japan's sustainable potential rate of 1-1.5 1-1.5%
America's potential rate of growth that is, the pace at which annual output can expand without pushing up inflation is also falling.
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