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Mexico has achieved a high degree of decentralisation in public services, but the Mexican fiscal
federal system has important shortcomings. States and municipalities have become heavily dependent on
federal transfers to finance a growing share of public spending.
In the run-up to the financial crisis, indebtedness of households and non-financial businesses rose to historically high levels in many OECD countries; gross debt of financial companies rose dramatically relative to GDP. Much of the debt accumulation appears to have been based on excessive risk-taking and exceptional macro-economic conditions and therefore not sustainable.
Consumer prices in the OECD area rose by 1.8% in the year to June 2013 compared with 1.5% in the year to May 2013.
As its workforce ages and major economies shift towards producing higher value-added goods and services, New Zealand will face increasing challenges to remain globally competitive and maintain high living standards. Future growth will need to come increasingly from productivity gains, and resources will have to shift towards activities that rely more on skills, technology and intangible assets.
Using a panel of OECD countries, this study assesses the linkages between structural policies and
macroeconomic stability. Business cycle and time-series characteristics of GDP and its components are
employed to define various measures for economic instability and for the persistence of adverse shocks.
Composite leading indicators (CLIs), designed to anticipate turning points in economic activity relative to trend, point to diverging patterns across major economies. The CLIs point to moderate improvements in growth in most major OECD economies but in large emerging economies the CLIs point towards stabilising or slowing momentum.
Real GDP in the OECD area rose by 0.4% in the first quarter of 2013, compared with flat growth registered in the previous quarter. Private consumption was the main contributor to overall GDP growth with 0.3 percentage point, while net exports and stockbuilding contributed 0.1 percentage point each.
This paper develops a simple model-based framework for stress testing fiscal consolidation strategies
under different scenarios of future shocks
This paper provides empirical analysis that measures the cyclical properties of intergovernmental transfers (or grants). Modelling a fiscal policy reaction function this paper tests whether the transfers systems in OECD countries are pro- or counter-cyclical, i.e. whether they offset cyclical fluctuations of sub-central economies or, on the contrary, exacerbate them.
Fiscal rules that constrain sub-central government (SCG) budgeting are very common across the OECD, but there are substantial cross-country differences in their implementation and impact. This paper presents the 2011 update of the fiscal rules database established in 2005.