The Organization for Economic Cooperation and Development (OECD) warned yesterday that the world economy is at risk of a fresh contraction if euro-zone and U.S. policy makers fail to restore confidence by resolving their fiscal problems, the Wall Street Journal reported today. In its twice-yearly report on global economic prospects, the Paris-based think tank delivered its most urgent call to action since late 2008, when the global economy was confronting a deepening financial crisis. It urged central banks in the euro zone, Japan, China and India to provide further stimulus to their economies, and said that governments should slow budget cuts, which it said were damping growth to a greater degree than it had expected.
