DP973 | Institutions and Economic Growth: Europe After World War II


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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.