May 24, 2022


Second thoughts about globalization … from the IMF (!):

Does globalization enhance resilience? Or does it have no effect? Or the opposite effect?

For the two major economic disruptions so far this century—the global financial crisis starting in 2008 and the COVID-19 pandemic starting in 2020—economists’ answers to those questions were largely wrong. As for the financial crisis, most of them underestimated the risks of financial globalization, and when it came to the pandemic, most overestimated the risks of sprawling, intricate production networks and trade globalization….

True confessions here.