OECD economies and financial markets are resilient

OECD economies and financial markets have been hit by extreme shocks (COVID crisis, then the war in Ukraine). But their economies and financial markets are highly resilient, rebounding strongly and rapidly after negative shocks, for several reasons: Governments are willing to run the necessary fiscal deficits, whatever their size; Companies’ earnings and cash reserves are extremely high, enabling them to cushion shocks; Households have huge savings reserves after the COVID crisis; Real interest rates are highly negative, bolstering demand and asset prices.