Assessment: The warning was issued alongside the OECD’s routine release of projections for member states’ economies, the organization believes inflationary pressures are expected to peak next year, not this year …
Before the US follows Europe by ordering more lockdowns as a preventative measure to stop the omicron variant from taking hold (although as many have pointed out, that horse appears to have already left the barn), the president’s economic advisers should consider this latest warning from – who else? – the OECD.
The NGO currently responsible for sheparding the most significant change in global corporate tax policy in a century is now warning that omicron could cause inflationary pressures – already at their highest level in 30 years – and the supply chain crunch that is helping to drive them higher, to intensify.
“When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand” Rev 6:5
OECD’s Laurence Boone
As some two dozen countries tighten border restrictions and impose new lockdowns, the OECD fears the new variant could delay the world’s return to “normality”, and warned that monetary policy-makers must be “cautious”. The organization’s chief economist added that central banks should try and focus their policy on providing the most vaccines to the most people, something the central bank is constitutionally ill-equipped to do. Maybe they should ask Bill Gates.
The warning was issued alongside the OECD’s routine release of projections for member states’ economies, the organization believes inflationary pressures are expected to peak next year, not this year.
The OECD left its growth forecasts unchanged from three months ago, but it hiked its inflation projections for the G-20 substantially. Inflation forecasts for 2022 were raised from 3.9% in its September predictions to 4.4% now. The largest per-country increases were in the US and UK, where inflation forecasts for next year rose in both countries from 3.1% to 4.4%.
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