Why is the United States managing to prolong the expansion better than the euro zone?
After a long period of expansion, growth is now proving to be much more resilient in the United States than in the euro zone. What gives the United States this growth advantage, i.e. its capacity to prolong the expansion? Monetary policy is more expansionary in the euro zone than in the United States; On the other hand , fiscal policy is much more expansionary in the United States, although this should not help when the economy is at full employment; Productivity, which is picking up in the United States but has fallen in the euro zone, clearly plays a role: US companies have made the effort to increase productivity to meet additional demand, while euro-zone companies have not. The fact that fiscal policy generates additional demand in the United States certainly plays a role, by encouraging companies to become more efficient to be able to produce more.