With Central Banks Out of Ammo, Governments Urged to Ready Stimulus for Next Downturn

OECD warns that countries need to prepare plans for a synchronized spending boost to fight a slowdown, but trade tensions could make that difficult

Governments around the world must prepare spending plans they can roll out quickly and in concert should the global economy slow sharply, given that central banks have largely run out of ammunition to fight a slowdown, the Organization for Economic Cooperation and Development said.

However, tensions among the world’s largest economies over trade and other issues could make such fiscal coordination particularly difficult.

The...