Financial Markets and Monetary and Financial Conditions

Financial markets and systems play a key role in resource allocation. Recent work has studied how legal and regulatory framework conditions for financial systems support innovation and investment and thus growth. Other work is studying financial market integration in the euro area.
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Need for policy stimulus stronger in US than in Europe, says OECD's interim assessment

20-Mar-2008

Inflation in US and Europe is at uncomfortable levels as economies slow, the OECD says in its latest interim assessment. But in contrast to the US, the near-term outlook for the euro area does not point to the need for policy stimulus.

Monetary policy, market excesses and financial turmoil

12-Mar-2008

This paper addresses the question of whether and how monetary policy ease may lead to excesses in financial and real asset markets and ultimately result in financial dislocation. It presents evidence suggesting that periods when short-term interest rates have been persistently and significantly below what Taylor rules would prescribe are correlated with increases in asset prices, especially as regards housing, though no systematic effects are identified on equity markets.

India needs more economic reforms to widen benefits from growth, says OECD report

09-Oct-2007

India’s annual economic growth could reach a sustainable 10 percent and be spread more evenly across the country if it pursues ambitious and wide-ranging reforms, says a new OECD report.

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