Economics
Tax Cuts and Spending Will Be the Next Crisis Defense, OECD Says
- OECD cuts 2019 global growth outlook, sees 3.5% v 3.7% in 2018
- Countries should coordinate fiscal stimulus in a downturn
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Tax cuts and a spending splurge will be needed if the global economy slips into a sharp downturn because central banks have nothing left in the tank, according to the OECD.
The world’s largest economies should stand ready to coordinate on fiscal stimulus, it said, adding that growth is losing vim due to trade headwinds, tighter financial conditions and a higher oil price. Its warning came amid a global stock sell off that’s dragged European stocks to a two-year low and sent the S&P 500 careening toward a correction.