OECD: Use fiscal policies to pull global economy out of low-growth mode

Tokyo

THE global economy could escape from the "low-growth trap" it has been caught in for a number of years through the use of fiscal initiatives to spur private investment, the Organisation for Economic Cooperation and Development (OECD) said on Monday.

Its secretary-general Angel Gurria said: "In light of the current context of low interest rates, policy-makers have a unique window of opportunity to make more active use of fiscal levers to boost growth and reduce inequality - without compromising debt levels."

The OECD prescription for growth appears timely, given that the incomin…