The OECD changes its tune – will our politicians?
In May, the OECD Economic Outlook recommended that
Exit from exceptional fiscal support must start now, or by 2011 at the latest, at a pace that is contingent on specific country conditions and the state of public finances.
The Chancellor lapped this up, and repeatedly used it as a stick to bash his opponents. Last week, the OECD’s Interim Assessment revealed that the organisation thinks that growth has slowed. If it is a long-term problem, they recommend
Where public finances permit, planned fiscal consolidation could be delayed.
Does anyone want to bet that the government will take this advice and at least postpone the cuts until we know what the prospects are for the world economy?
Oh well, perhaps some other time.