Mar. 28 - OECD Chief Economist Pier Carlo Padoan gives an update on the near-term economic outlook for G7 nations.
Cyprus might not be a member of the OECD but so does -- have the potential to do you -- the Euro zone's fragile recovery I'm joined by no ECB chief economist. Yet -- -- -- one. Who's giving and updates on his minutes -- economic outlook. I missed a putt on many thanks for talking with us how how false strike could Cyprus and the implications of Cyprus. Nor can be overruled the eurozone economy. We are not really very concern actually we we note that there -- risks in the eurozone have a significant C. Diminished over the past few months and this is. Good news of course Cyprus is a new shock. But we think it will be contained in terms of impacts on the eurozone. I am. What do you make of the way the ECB has handled this has has its role peanuts whole compromised to some are suggesting. Well I'm not familiar -- the inside talks IE continue to believe the DC be especially after last summer. Is producing a great benefit to the Euro area by standing behind -- Finally clear rules or intervention and engagement. To preserve the integrity of the eurozone. But but but as far as the -- is concerned and are doing an -- On rate tossing an admin que me right. We strongly recommended there is space to do more in terms of easing monetary policy even to more traditional way such discussing the policy rate. And also improving communication to -- would guidance. This is warranted by the fact that the inflation picture seems quite subdued in the Euro area while demand is lagging. I'm its early is the one -- country don't you'll you'll G-7 list that you don't see returning to growth -- -- to. What will run turned a corner of this yet. We are still looking at some later figures for the rest of the year but we do believe that that was happened by the end of train thirteen yes lieutenant to moderate positive growth. What do you expect to happen -- not -- on the political front over the next few months. Well aware watching closely the developments in Italy I do hope that the government would be formed soon this is what majority of population is. Looking for. I'm I know been in the report that you say the US Japan and Germany in the dry Eva was. To what extent can we rely on the US. And Japan over the next -- Well at two different stories they US is slowly farming its growth it's ending its deleveraging process of this is good news. But of course -- faces medium to long term fiscal headwinds. Which has to be addressed and monetary policies continue to be remain accommodate. Japan is there really -- new story in town we have seen that to a since the announcement of the -- Economic policy stance will monetary and fiscal. -- -- this is given short term boost to the economy in the medium term of course the challenges remain. Debt consolidation and at fiscal consolidation. And getting out of deflation. I'm easier say in the report the markets are getting ahead of so the real economic reality. -- are you more concerned about a bond market bubble or an equity market bubble. Well we just see that bubbles are coming happy new lawsuits classes. And this is still allowed to stand the consequence of both. -- or the tail and tail risk so more confidence more risk taking and of course abundant liquidity. We just think that monetary policy should continue to be expansionary. A lot of course and watching carefully the emergence of possible bubbles here and there. -- missed a -- on many thanks for talking with Reuters. Back up there get Palo putted one from the OECD more what's going on in the markets and our market pulse at twelve noon on -- of trouble -- --