G-20 needs to take bold action on economy: OECD (by William L. Watts)
FRANKFURT (MarketWatch) -- Leaders of the Group of 20 industrialized and developing nations need to take bold, coordinated action to keep the global economy on track after a dramatic rise in "uncertainties" surrounding the short-term outlook, Organization for Economic Cooperation and Development Secretary-General Angel Gurria said in a "briefing note" released Monday. Gurria said the plan unveiled last week by European leaders to control the euro-zone debt crisis must be implemented "promptly and forcefully." The outlook would take a turn for the worse if a "disorderly" sovereign debt situation ensues or if U.S. fiscal policy became "excessively tight," he said. The OECD said the European Central Bank should cut interest rates while other central banks in advanced economies should keep rates on hold. G20 leaders in 2008 adopted a "clear and coherent" plan that avoided a second Great Depression, Gurria said, while the adoption of a plan at a G-20 summit meeting in France later this week "is just as imperative to restore confidence through decisive actions in specific countries and regions," he said.