Chief Economist of BNP Paribas Fortis, explains how economics need to evolve after the financial crisis has proven the prevailing economic paradigm is no longer valid
17. Future of the EMU Design error in the Monetary Union « No Bail-out » becomes « No Default » First Political Union, followed by Monetary Union Germany Italy United States Monetary Union without Political Union Scandinavian Union (1873 – 1914) Latin Union (1865 – 1927) Bretton Woods (1944 - 1971)
27. Belgium Belgium Hungary Hungary France Germany Germany France Italy Austria Greece Italy Austria Sweden Sweden Finland Turkey Czech Republic Finland Greece Denmark Denmark Spain Spain Czech Republic Netherlands Norway Slovakia Portugal Turkey Netherlands Norway OECD Portugal Slovakia OECD Poland Poland United Kingdom Luxemburg Canada United Kingdom Japan Canada United States United States Switzerland Switzerland Iceland Japan Australia Ireland Luxemburg Iceland Ireland Australia Korea Korea New Zealand New Zealand Mexico Mexico 0 5 10 15 20 25 30 35 40 45 50 0 10 20 30 40 50 60 Work is heavily taxed Tax wedge (income tax + social security contributions,OECD) Single, no children, AW Married, 2 children, AW + 67% AW
30. Average age at labour force exit (Men) 68 66 64 62 60 58 56 54 52 ITA FIN IRL PRT BEL FRA AUT LUX NLD USA GBR DEU ESP GRC More workers needed, older workers needed