In contrast to the USA, Europe has struggled to return to the growth path it was on prior to the financial crisis of 2007–11. Not only has the recovery been slow, it has also been variable with Europe's core countries recovering more quickly than those on the periphery. It is widely believed that the best way to address this slow recovery is through structural reform programmes whereby changes in government policy, regulatory frameworks, investment incentives and labour markets are used to encourage more efficient markets and higher economic growth. This book is the first to provide a critical assessment of these reforms, with a new theoretical framework, new data and new empirical methodologies. It includes several case studies of countries such as Greece, Portugal and France that introduced significant reforms, revealing that such programmes have very divergent, and not always positive, effects on economic growth, employment and income inequality.

‘This remarkable book edited by Campos, De Grauwe and Ji is a testament to the importance of the analysis of impulse responses. The Global Financial Crisis (impulse) continues to influence our lives through various structural reform mechanisms (responses) and will do so for a very long time. A fascinating and balanced read for everyone interested in economics and more broadly in social sciences.'

Yunus Aksoy - Birkbeck, University of London

‘The declines in economic growth rates across European countries have revived the call for structural reform. However, there are many different types of structural reform and some calls for reform are politically motivated. Therefore, this book fills an important gap by presenting a comprehensive overview of the existing knowledge on different types of reform and the evidence of their effectiveness. Politicians, commentators, academics as well as the public at large can benefit from reading this book and learn what would be most suitable type of reform for what country if any.'

Wouter DenHaan - London School of Economics

‘Structural reforms are typically viewed as the solution to Europe's sluggish growth. This important collection of essays explains when they work and how.'

André Sapir - Université libre de Bruxelles