>FLASH ECONOMICS (ECONOMIC RESEARCH)

What would be the characteristics of a worldwide coordination of economic policies?

Global growth is set to remain slower due to:

• the wider growth gap between emerging and OECD countries;
• on average inefficient monetary policies in OECD countries, but efficient in emerging countries;
• already excessively expansionary fiscal policies in countries where the savings rate is insufficient (United States, euro zone ex Germany and Netherlands, United Kingdom and India).

The worldwide coordination of economic policies is a utopian objective, but it would consist in this environment in:

• monetary policies becoming more expansionary in the countries where they are efficient;
• fiscal policies becoming more restrictive in the countries where there is not enough savings, and more expansionary in the countries where there is a savings glut (Asia, oil producers, Germany, Netherlands, Japan, etc.).

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