GREAT RECESSION AND OECD (SELECTED POLICY ISSUES)

1. GREAT RECESSION AND OECD(SELECTED POLICY ISSUES) Karel Dyba

2. CONTENT • FINANCIAL AND ECONOMIC CRISES AND OECD POLICY RECOMENDATIONS • OECD ENLARGEMENT AND ENHANCED ENGAGEMENT PROGRAMME 3. CONCLUDING REMARKS

3. 1/1 - GREAT RECESSION AND OECD POLICY RECOMENDATIONS OECD PRODUCTS, THEIR BROAD CONTENT AND AIM • OECD STRATEGIC RESPONSE TO THE FINANCIAL AND ECONOMIC CRISIS, END 2008 • UPDATED IN MARCH 2009 AS "THE ROAD TO RECOVERY”  -  HOW TO MITIGATE THE IMPACT OF THE RECESSION(FISCAL STIMULUS) - POLICIES TO CHART THE ROAD TO A STRUCTURALLY BETTER UNDERPINNED RECOVERY AND GROWTH

4. 1/2 - GREAT RECESSION AND OECD POLICY RECOMENDATIONS(CONTINUED) WHAT IS A SMART FISCAL STIMULUS  - TIMELY, TEMPORARY AND TARGETED - FOCUS ON SHORT TERM EFFICIENCY AND LONG TERM GROWTH (INFRASTRUCTURE, TAX CUTS ON LOW INCOME LABOUR, TRAINING, R AND D, INOVATION) -  MINIMAL SUBSIDIES PROTECTION OF NON-FINANCIAL FIRMS ANDSECTORS -   SIZE OF THE STIMULUS DIFFERS

5. 1/3 - GREAT RECESSION AND OECD POLICY RECOMENDATIONS(CONTINUED) - NO TO TRADE AND INVESTMENT PROTECTIONISM (DOHA) -   ADOPTING COUNTRY SPECIFIC STRUCTURAL REFORMS -   (OECD COUNTRY ECONOMIC SURVEYS) -   BETTER INTERNATIONAL COORDINATION -   COMMITMENT TO MEDIUM TERM FISCAL ADJUSTMENT AND RETURN TO A SUSTAINABLE FISCAL BALANCE

6. 2 - OECD ENLARGEMENT AND ENHANCED ENGAGEMENT PROGRAM -  ENLARGEMENT: INITIAL MEMORANDA PRESENTED BY SLOVENIA,ESTONIA, CHILE, ISRAEL -   AND RUSSIA? -   ENHANCED ENGAGEMENT: CHINA, INDIA, BRAZIL, SOUTHAFRICA, INDONESIA - WHY AND HOW

7. 3 - CONCLUDING REMARKS -   LARGE STIMULUS: EXCEPTIONAL MEASURE REQUIRED BY EXCEPTIONAL TIMES -   UNUSUAL MONETARY POLICIES AND DANGER OF INFLATION -   REMOVAL OF TOXIC ASSETS FROM THE BALANCE SHEETS OF BANKS AND PRIVATE SECTOR LEAD RECOVERY (GEITHNER PLAN) - OECD ENLARGEMENT AND ENAHANCED ENGAGEMENT, CURRENT INICIATIVES