Economic forecasting and policy the international dimension

Written by three international economists based at the OECD, this book argues that national economic policy goals are more likely to be achieved if countries have access to reliable, internationally-consistent economic forecasts. Countries should set their policies cooperatively, with a view to ensuring that they are broadly compatible and add up to a satisfactory global performance.
Stressing the important international element that exists today in economic performance and policy-making, the book shows how economies are very open to international trade and financial flows. On occasion, individual countries can find themselves unable to achieve their domestic economic objectives because of developments which, from their individual perspective, appear to originate abroad. Yet, considering the world economic system as a whole, it is clear that there can no longer be any abroad.

Part I considers the broad achievement, across a range of countries, of economic policy in the 1950s, the 1960s and the 1970s, concentrating on the international aspects. Part II looks at the way in which international forecasts are made, concentrating on practice rather than theory. Part III examines recent approaches to policy making, with particular emphasis on episodes in which countries have sought to cooperate internationally. The authors conclude that while there have been some clear successes, it ought to be possible, with carefully devised policies and with close cooperation, to do even better in the future.