Overreliance on monetary policy entails significant costs: UN report

Overreliance on monetary policy entails significant costs, according to the United Nations World Economic Situation and Prospects (WESP) 2020, which was launched Thursday at the UN headquarters in New York.

"Overreliance on monetary policy is not just insufficient to revive growth; it also entails significant costs, including the exacerbation of financial stability risks," said the report.

A more "balanced policy mix" is needed, one that stimulates economic growth while moving toward greater social inclusion, gender equality, and environmentally sustainable production, the report noted.

"Amid growing discontent over a lack of inclusive growth, calls for change are widespread across the globe. Much greater attention needs to be paid to the distributional and environmental implications of policy measures," UN Chief Economist and Assistant Secretary-General for Economic Development Elliott Harris said at a press conference for the launch of the report.

The World Economic Situation and Prospects is an annual UN flagship publication on the state of the world economy, viewed through the lens of the 2030 Agenda for Sustainable Development. It is a joint product of the UN Department of Economic and Social Affairs, the UN Conference on Trade and Development and the five UN regional commissions.