The economic policy choices currently being made in the OECD will reduce its long-term growth

OECD countries are currently choosing to: Reduce the risk of recession by conducting highly expansionary fiscal and monetary policies, which is made possible by the absence of inflation even at full employment; Try to reduce inequality by keeping industrial production in the vicinity of the end-buyers of goods and by trying to repatriate production to OECD countries. These choice s are reducing the risk of recession in the short term and the risk of losing skilled jobs. But i t has to be pointed out that the cost of these choice s is that they will reduce long-term growth in the OECD, as there will be: A misallocation of savings (to inefficient investments and companies and to current fiscal deficits); Hardship for savers and future pensioners, which will structurally reduce demand; Reduced international specialisation and use of countries’ comparative advantages, with all this leading to a slowdown in both supply and demand for goods and services in the long term. The price to pay to avoid recessions and inequality is therefore a less efficient economy.