Central banks near limits of ability to stimulate growth, says OECD
This is according to Angel Gurria, head of the Organization for Economic Cooperation and Development (OECD).
In the absence of "breakthrough, collective" policies, global growth is likely to remain weak, Gurria said in an interview with Reuters ahead of a meeting of leaders of the world's 20 biggest economies, the G20, in the eastern Chinese city of Hangzhou.
"We have left our good central bankers to do all the heavy lifting. It has to be like a relay. Continued accommodative monetary policy, and then you get to the second relay like in the four-by-100s and the baton passes.
"Now you need to get it to the finance ministers, to the economy ministers, to the trade ministers, to the technology ministers, the science ministers, the education ministers, the competition ministers. Now is the big time for structural change."
Echoing remarks by China's vice finance minister, Gurria emphasized that a combination of coordinated monetary, fiscal and structural adjustment policies are now necessary to revive growth worldwide, including in China.
Gurria said that China likely could continue growing at around 6.5 to 7 percent during its current five-year plan period (to 2020) without major distortions in the structure of the economy. ■