Sunday, 13 August 2017

Has globalization has its day (interview in Economia july/augustus 2017, pp. 12-13)

Are we on the brink of deglobalization? International organizations, such as IMF and OECD, point out that world trade is no longer performing its role as an engine of economic growth. They note the global trade slowdown that seems to end to the process of increasing openness that was a key characteristic of the halve century that preceded the world trade collapse in 2008/9.  Importantly the official forecasts of IMF and OECD are optimistic in the sense that they assume that the policy errors of the 1930s can be avoided, in particular the political twin-sins of isolationism and protectionism. Current developments are sobering. America is to be made great again, the (dis)United Kingdom will divorce itself from everything that smells like Brussels and on the European Continent self-congratulations on fending of extreme nationalist parties disable politicians to see the underlying problem. Yes we are on the brink of deglobalization



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