by Catherine L Mann, OECD Chief Economist and Head of OECD Economics Department For the last five years the global economy has been in a low-growth trap, with growth disappointingly low and stuck at around 3 per cent per year. Persistent growth shortfalls have weighed on future output expectations and thereby reduced current spending and … More Deploy effective fiscal initiatives and promote inclusive trade policies to escape from the low-growth trap
by Catherine L. Mann, OECD Chief Economist, OECD Economics Department The role of fiscal policy has been at the heart of the policy debate since the financial crisis. With the global economy stuck in a low-growth trap and monetary policy overburdened, it is time to re-assess the use of fiscal policy levers. Government interest payments … More Time to deploy the fiscal levers actively and wisely
by Hansjörg Blöchliger, Senior Economist, Policy Studies Branch, Economics Department The growth pattern of OECD countries and their sub-national entities is puzzling. Between-country differences in GDP per capita are declining, yet the differences across jurisdictions within those countries tend to rise. Put in other words, countries’ GDP converges, while the output of their sub-national jurisdictions … More Does decentralisation foster regional GDP convergence?
By Paula Garda and Mauro Pisu, Country Studies Branch, OECD Economics Department Costa Rica’s economic, social and environmental achievements are impressive. It has succeeded in combining rising living standards, virtually universal health care, pension and primary education systems with sustainable use of natural resources. Incomes per capita have nearly doubled in real terms over the … More Tackling the three main challenges in Costa Rica: fiscal reform, reverting the slowdown in productivity and reducing inequality
By Alvaro Pina, Head of European Union and Euro Area Desk, Country Studies Branch, OECD Economics Department Tomorrow the European Commission will assess again the fiscal situation of Portugal and Spain, and decide whether to recommend to the Council that the Excessive Deficit Procedure be stepped up for those countries, exposing them to various … More Fiscal policy in the euro area: in the current juncture, don’t apply sanctions