So Long, Globalization V2 : The Causes and Consequences

Economic history since the industrial revolution has not been a story of gradual evolution. Rather it has been punctuated by disruptive changes that ushered in new episodes. The current episode is being ushered out; what will replace it? The sources of the disruption can be traced by the various economic indicators that literally went off the charts: nominal interest rates broke the “zero bound” going into negative territory; while financialization, income inequality, and the structural bias against labour and “good jobs” soared. Economic systems face economic constraints: the balance of payments must balance and savings must equal investment. But they also (eventually) face other constraints: economic outcomes must fall within tenable social, political, and environmental bounds or disruption follows. The system that is to come will respond to the pressures that brought down Globalization V2. Can we glimpse at this future?