Europe Is Stuck: It Can't Cut and Grow at the Same Time

Photograph by Zhuo Lei/xh/Xinhua Press/Corbis

European leaders are looking for ways to get growth going again, but tough deficit-reduction rules prevent them from using the most obvious tool: government stimulus. The Europeans could learn from the Obama administration, which despite the occasional misstep has gotten the recovery formula correct: Gas now, brakes later.

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