|
With a population of more than half a billion people, the EU is the world's largest export market. If it remains stuck in reverse, companies in the U.S. and Asia will be hit. Last month, U.S.-based Ford Motor Co. lost $462 million in Europe and called the outlook there "uncertain." The OECD also urged the European Central Bank to take additional emergency steps to boost the economy. It said the eurozone's central bank should take the unusual step of cutting the interest rate it pays banks for depositing money with it to below zero. This would push banks to lend money rather than hoard it as super-safe central bank deposits. The OECD also said the ECB should issue clear guidance on how long its exceptional measures such as very low interest rates will remain in place
-- along the same lines as the U.S. Federal Reserve. The ECB was even urged to consider buying assets such bonds
-- a tool that can ease borrowing costs and increase the supply of money in the economy but one that the central bank has so far been reluctant to take. Other major economies have faltered this year but none are in recession, like Europe. The U.S. economy grew 2.2 percent last year and China, the world's No. 2 economy, is growing around 8 percent a year. In the U.S., the organization urged politicians to soften automatic across-the-board budget spending cuts to make them less harmful to growth, and said "a credible long-term fiscal plan needs to be put in place."
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor