The OECD has urged member states to redouble their efforts to encourage growth, warning that the global economy faces a diverging outlook and months of exchange rate instability.
In its assessment of trends before next week’s Group of 20 summit in Brisbane, the Paris-based organisation called for a different mix of fiscal policy, monetary policy and structural reforms to raise demand in the short term and improve the longer-term outlook for prosperity.
In a change of stance at the OECD that coincides with the appointment of a new chief economist, the organisation said governments should delay efforts to cut public borrowing as one leg of a “three-legged stool” to improve growth.
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