It will be vital for OECD countries to identify productivity-enhancing public investments

It cannot be assumed that long-term interest rates are going to remain forever very low in OECD countries: Inflation could re turn (if labour market rules change); The need may arise to correct financial imbalances (real estate bubble s , problems for life insurers). If higher long-term interest rates are a possibility in the OECD, then, given public debt ratios, another possibility is that some countries may become insolvent in the future. The only economic policy to avert such a crisis is one of public investment focused on investments that increase productivity gains and potential growth.