A sustainable European currency needs a common fiscal stabilisation instrument

A sustainable European currency needs a common fiscal stabilisation instrument Jan Stráský and Guillaume Claveres, OECD Economics Department, Euro Area/EU desk The euro area sovereign debt crisis has exposed important flaws in the design of the Economic and Monetary Union, especially when it comes to dealing with macroeconomic shocks. Compared to federal states, fiscal transfers … More A sustainable European currency needs a common fiscal stabilisation instrument

Fiscal decentralisation and inclusive growth?

by Sean Dougherty, Senior Advisor, OECD Fiscal Network Over the last decade or more, many countries have experienced slowing productivity growth and a rising concentration of income. Concerns about these developments have motivated a broadening of the policy discussion about how to ensure that economic growth is made more inclusive and multidimensional. One important channel for … More Fiscal decentralisation and inclusive growth?

To shorten or to lengthen debt maturity to lower debt servicing costs?

By Alessandro Maravalle and Lukasz Rawdanowicz, OECD Economics Department Low interest rates prevailing in many advanced economies in recent years have already helped to lower the debt servicing burden, but government debt and interest payments remain large in many OECD countries. Could a further reduction in interest payments be attained by “locking-in” current low interest … More To shorten or to lengthen debt maturity to lower debt servicing costs?

Stronger Growth but Risks loom large

By Álvaro S. Pereira, OECD Chief Economist ad interim, Economics Department After a lengthy period of weak growth, the world economy is finally growing around 4%, the historical average of the past few decades. This is good news. And this news is even better knowing that, in part, the stronger growth of the world economy … More Stronger Growth but Risks loom large

La croissance s’affermit, mais des risques assombrissent fortement l’horizon

Álvaro S. Pereira, Chef économiste de l’OCDE par intérim, Département des affaires économiques Après une longue période de croissance atone, l’activité économique mondiale croît enfin au rythme d’environ 4 %, qui correspond à la moyenne historique des dernières décennies. C’est une bonne nouvelle, et qui apparaît encore meilleure lorsque l’on sait que ce rebond de la … More La croissance s’affermit, mais des risques assombrissent fortement l’horizon

Un Mayor crecimiento, aunque se advierten importantes riesgos

Álvaro S. Pereira, Economista Jefe interino, Departamento de Economía de la OCDE Después de un largo período de débil crecimiento, la economía mundial finalmente está creciendo alrededor del 4%, cercano al promedio histórico de las últimas décadas. Esta es una buena noticia, y es aún mejor sabiendo que, en parte, el mayor crecimiento de la economía … More Un Mayor crecimiento, aunque se advierten importantes riesgos

Deploy effective fiscal initiatives and promote inclusive trade policies to escape from the low-growth trap

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

Time to deploy the fiscal levers actively and wisely

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

Does decentralisation foster regional GDP convergence?

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?

Tackling the three main challenges in Costa Rica: fiscal reform, reverting the slowdown in productivity and reducing inequality

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