Now that the UK has basically stopped growing, the OECD has a message for it: Maybe slow down on the spending cuts. This austerity thing isn’t working out so hot for you.
So basically, countries that took the OECD have now harmed their economies, and now the OECD is going back on its call.
Of course, it’s the same situation with the IMF-designed turnaround plans in Greece and Spain. These spending cuts neither stabilise the economy, or even improve the debt situation. Basically, listening to their advice has been suicidal.
For what it’s worth, Krugman is back out today slamming OECD advice about rate hikes.