Structural reforms cannot only contribute to a durable rebalancing process, but also attenuate the negative impact of households' deleveraging: stronger real wage adjustment leads to a smoother reaction of employment and, consequently, of real output, while a faster adjustment in prices allows for an also faster adjustment in the real interest rate towards the equilibrium level.
Oké, Cody, hoor je mij. één, twee, één, tweeEurLex-2 EurLex-2