Trichet advocates debt reduction to avoid “lost decade”
Promoting economic growth is the most effective way to reduce a high debt-GDP ratio, Jean-Claude Trichet, the president of the European Central Bank, said on Friday.
"Strong growth produces higher income and wealth, thus increasing the net worth of households and firms and reducing their leverage. Robust economic growth also boosts government revenues and reduces expenditure, especially when large automatic stabilisers are in place" he said.
The United Kingdom, which reduced the government's
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