18 September 2015
Return from the dead?
Old ways of thinking won’t bring developed countries back to economic life. Weighed down by the legacy of the crisis, they also face deep challenges like a faltering labour supply and slowing innovation.
“Neither economists nor market participants, nor indeed governments foresaw a financial crisis of the type and magnitude we have now. The collapse of trust and subsequent credit freeze in the wake of the Lehman Brothers collapse was a shock.”
Climate change and, more generally, environmental damage have quantifiable economic and health costs, which weigh on long-term growth and well-being. If left unchecked, climate change is projected to decrease global GDP by 0.7 to 2.5 % by 2060. At the same time, the costs to society of air pollution already appear substantial–equivalent to some 4% of GDP across OECD countries and even higher in some rapidly developing economies. Yet global action in the environmental domain proceeds only slowly–too slowly to be up to the challenges we face. Why is it so?
The recent economic meltdown was at root not a failure of character or competence, but a failure of ideas.
Financial market overhang rather than excessive fiscal spending threatens confidence today. And there are sounds investments which can make society healthier.
Did you know that the pace of productivity growth is slowing sharply across the OECD area? Moreover, the trend has continued downward since the early 2000s after a brief upward tick in the 1980s and 1990s, which in part reflected the diffusion of new information and communications technologies
The car industry has taken a dent since the recession started to bite in 2008, but even before then, new patterns were emerging that would reshape the sector for a long time to come.
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