Robert Zoellick - The International Economy - Untapped Resource - 2011

20 THE INTERNATIONAL ECONOMY FALL 2011 Untapped Resource TIE: Is the developed world becoming like Japan—in other words, mired in debt and unable to grow at more than mediocre levels? For 2012, Japan is expected to grow at a higher rate than the rate... More

20 THE INTERNATIONAL ECONOMY FALL 2011 Untapped Resource TIE: Is the developed world becoming like Japan—in other words, mired in debt and unable to grow at more than mediocre levels? For 2012, Japan is expected to grow at a higher rate than the rate achieved by both the eurozone and the United States. Do you agree with this “We’re all becoming Japan” scenario? Zoellick: The core issue for growth is to go back to the fundamentals. I’m not sure how much more can be done with monetary policy one way or the other. Federal Reserve Chairman Bernanke’s Jackson Hole speech did a service because he pointed out that most fundamental decisions now lie with Congress and the executive branch. Beyond fiscal policy, the real answer to your question about Japan is whether countries are willing to address the structural elements of growth to free private sector potential. When I talk about growth, I’m not talking about Keynesian macroeconomic management. I’m talking about the fundamentals of gro Less