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This article investigates the macroeconomic policy challenges associated with a prospective continuation of international trade and financial integration over the next two decades, making use of a global macroeconomic model newly developed by the OECD.
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Cyclical fluctuations in economic activity have moderated over time but the extent and dynamics of volatility remain different across OECD countries. A reason behind this heterogeneity is that countries exhibit different degrees of resilience in the face of common shocks.
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Over the past 25 years inflation has moderated considerably in all OECD economies. At the same time, the production of many goods and services has become increasingly internationalised and the level of trade between the OECD and non-OECD economies has risen markedly.
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Fiscal equalisation is a transfer of fiscal resources across jurisdictions to offset disparities in revenue raising capacity or public service cost. It covers on average 2.5% of GDP or 5% of total government expenditure across OECD countries.
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Russia, Norway and the Middle East are three regions that have distinct histories in energy policies.
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Conventional income distribution statistics subtract taxes from household income but do not take into account the distributional effects of the services financed through these taxes.
This paper finds that coherent regulatory policies can boost investment in network industries of OECD economies.
This paper assesses the quantitative importance of the working-age population broken down by age, gender and education in explaining differences in employment and productivity levels across countries.
Investment in network infrastructure can boost long-term economic growth in OECD countries. Moreover, infrastructure investment can have a positive effect on growth that goes beyond the effect of the capital stock.
Investment in network infrastructure – the energy, water, transport and telecommunication networks –which performs a vital role for the functioning of the economy, can contribute to raising growth and social welfare. But more is not always better.