OECD: The expansionary monetary policy cannot offset all the factors that are weakening economies
OECD countries’ economies are currently affected by: Weak global trade, declining Chinese growth; The rise in risk aversion and risk premia; The weakness of industry; Hiring difficulties. This is weakening their growth, despite positive factors (high corporate profitability, expansionary fiscal policy, rising real wages). As central banks have limited leeway for monetary policies, they will not be able to correct these multiple factors that are weakening OECD countries’ economy, whatever central banks are saying. From the growth outlook viewpoint, the debate on monetary policies is becoming rather uninteresting .