Presents OECD's assessment of the economic outlook to the end of 2006 for the OECD area and China, Brazil, and the Russian Federation. It finds that Japan and the US have rebounded but that Europe is lacking in sustained momentum, and it carefully examines why. This issue of the OECD Economic Outlook also includes several medium-term scenarios projecting to 2010. The special chapter covers measuring and assessing underlying inflation.
- 30 June 2005
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Further interest-rate increases will probably be needed to forestall a wage/price spiral. Now that tax cuts have been passed, the government should aim at budget surpluses higher than those currently planned to ensure a better policy mix. This should involve additional spending restraint and reductions in tax expenditures favouring the booming housing sector.