Inequality and growth

MADRID | By Luis Arroyo What has growth to do with growing inequality?  Until recently, we thought that inequality favoured growth, or in anycase it had a neutral impact on it. Growth was the “best supplier” to create new opportunities, through the vertical mobility of the most flexible countries. But the OECD released this report showing how inequality “significantly” curbs economic prosperity. And yet, Krugman is skeptical that the inverse correlation between inequality and growth is so obvious. According to him, strong evidence is lacking, and there are signs that part of inequality can be cured with growth.

Keynesians Trojan horse a sign of changing times at OECD

MADRID | By Sean Duffy | The OECD´s economic outlook showed that voices calling for action in Europe are growing louder. With the outcomes of austerity and budgetary consolidation continuing to drag down the economy, Catherine L Mann´s arrival as its chief economist represents a significant coup for advocates of the opposite recipe.

“European leaders need to act”, says OECD’s Head of EU and Eurozone

MADRID | By Sean Duffy | The latest economic outlook from the Organisation for Economic Co-operation and Development (OECD) forecasts a bleak outlook for Europe unless action is taken. The Corner asked Piritta Sorsa, Head of EU and Eurozone surveillance at the OECD about the increased sense of urgency, sovereign bond proposals and the necessity for consensus among Eurozone members.

OECD to Spain: Reform your reforms

MADRID | The Corner | Monetary policy is practically exhausted, there is almost no room for fiscal manoeuver due to the excess of indebtment… the only possible move for Spain now is “reforming the reform,” as Barclays’ Alberto Vigil commented on Tuesday. The Paris-based think-tank, who as usual warned about the huge unemployment rate and the deflation risk on Monday, recommended increasing consumer, property, and green taxes, and reducing employer contributions to social security for less-skilled workers.

SPECIAL REPORT: Are minijobs a solution for Europe?

BERLIN | By Alberto Lozano | Europeans never stop listening to ideas for economic reforms. One potentially successful option, with support from Europe’s leading institutions for smaller economies, is the ¨minijob¨.

But are these atypical jobs the solution to move Spain’s 26 percent unemployment rate closer to Germany’s 5 percent?

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The Human Costs of the Crisis (OECD)

THE CORNER TEAM | The economic crisis has inflicted devastating damage on the population: there are 15 million more unemployed people in OECD countries than in 2007. Relative poverty is on the rise. Young people are increasingly dependent on their families. Life satisfaction and citizens confidence in the political system has plummeted, mostly in Greece, Italy and Spain. This is the OECD X-Ray of the challenges ahead.

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European Youth Unemployment is Out of Control

Via Presseurop | Young Europeans won’t enjoy any favorable job perspectives before at least 18 months. As we can see in the last OECD report, the end of the crisis is not here yet. In some countries such as Greece and Spain, unemployment of the under 35 is above 60 percent.

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The OECD gives a warning to Germany

By Julia Pastor, in Madrid | Every country in Europe is holding up against the neverending financial crisis as Germany does, but the country ‘cannot…