NOTE: The Growth Economics Blog has moved sites. Click here to find this post at the new site.
One of the big advantages of having written this blog for a while is that I can start recycling old material. I’m going to do that in response to the small back-and-forth that Noah Smith (also here) and John Cochrane had regarding Jeb! Bush’s suggestion/idea/hope to push the growth of GDP up to 4% per year. Cochrane asked “why not?”, and offered several proposals for structural reforms (e.g. reforming occupational licensing) that could contribute to growth. Smith was skeptical, mainly of the precise 4% value. Why 4? Why not 5? Why not 3 1/3?
Oddly enough, the discussion of Jeb!’s 4% target is also a good entry point to talking about Greece, and the possibility that the various structural reforms insisted on by the Germans will manage to materially change their…
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Utopia, you are standing in it! 
Feb 03, 2017 @ 16:57:04
Actually the OECD provided evidence on this I think 2 years ago.
It showed in some case reform could be detrimental to growth. For example labour market deregulation is fantastic when the Economy is growing well but it reinforces the contraction when it is not.
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