OECD Warns About Global Economic Growth Trap

OECD released a pessimistic report on global economic growth.  It places the blame on governments which have failed to respond properly to slow growth.  They have relied upon monetary policy to stimulate growth but low interest rates have not been able to pull the global economy out of its slump.  Governments should be taking advantage of low interest rates to stimulate demand with fiscal policies.  Moreover, reliance upon monetary policy has created its own problems.  It has increased risk in the financial system.