Responding to the Crisis while Protecting Long-term Growth

OECD countries have taken a wide range of measures in response to the crisis, notably in the areas of infrastructure investment, taxes, the labour market, regulatory reforms and trade policy. This chapter assesses the expected effects of these measures on long-run income levels, and examines structural policy challenges to deliver strong and sustainable growth going forward. The main conclusions are that OECD countries have so far avoided major mistakes – in particular concerning trade and labour market policies – but some risks remain. The crisis has in general reinforced the need for structural reforms. These reforms could help to speed up the ongoing recovery, strengthen public finances while protecting long-term growth and, in some cases, contribute to the resolution of global current account imbalances.