The likelihood is increasing of a sudden drop in the value of the dollar, OECD chief economist Jean-Philippe Cotis said today.
OECD chief economist Jean-Philippe Cotis
"This is not the most probable scenario. But the likelihood is increasing of a sudden, sharp drop of the dollar," Mr Cotis told a news conference, where he was presenting the OECD's semi-annual Economic Outlook.
Mr Cotis also said high oil prices and the appreciation of the euro did not explain the OECD's change in its euro zone forecast. The Paris-based think tank cut the bloc's growth forecast to 1.2 per cent this year from 1.9 per cent. Mr Cotis said German reforms augured well for the future and had to be pursued.
He also said French domestic demand may weaken to some limited extend.
Turning to Italy, Mr Cotis said that it was important for Italian inflation not to take off when the economy recovered. On price pressure in the United States, he said: "Inflationary pressure is under control."