ABSTRACT
Both the United Kingdom (UK) and United States (US) have a boom and bust approach to economic growth. Low wage paying countries have received a strong boost to their manufacturing sectors in the second half of the 1990s. During the 1970s and 1980s the German Bundesbank was the only central bank that achieved price stability and a degree of economic stability. Service industries will thrive in Euroland. Europe is already shifting away from manufacturing to services, just as in the US and the UK. Organic growth is not going to be quick enough for many of companies with European or global aspirations. The Growth and Stability Pact and the restructuring of the industrial base in Europe will force major labour market changes in Germany and France. The problem has come to a head in the 1990s with the implementation of more credible economic policies in countries like the UK and the US and the creation of their “Goldilocks” economies.
