Crumbling Global Order: Wall Street Journal

Major shifts in world systems can result in global downturns, argues Greg Ip for the Wall Street Journal. This was the case for the end of the era of cheap oil but not the advent of the internet. Increasing resistance to globalization and open markets fueled by nationalism and populism – and a general decline in diplomacy with Brexit, the US-China and South Korea-Japan trade wars, divisions in the European Union, shifting supply chains and currency disruptions – add challenges for businesses and investors. Central banks may lack adequate tools to battle a deep recession even as national leaders manipulate and disregard traditional economic norms. “Businesses and investors, unsure of what if any rules will govern international commerce, are retreating from risky investments,” Ip writes. “Globalization has suffered temporary setbacks in past decades. This time feels different. The U.S., which led in creating global institutions such as the World Trade Organization, now leads in crippling them.” National leaders, intent on boosting their own economies, are in no mood for compromise or cooperation. – YaleGlobal

Crumbling Global Order: Wall Street Journal

Investors and business worldwide cope with new normal of resurgent nationalism, retreating globalization and growing risk of recession
Greg Ip
Wednesday, August 14, 2019

Read the article from the Wall Street Journal  about a breakdown in global order and impending recession.

Greg Ip is chief economics commentator for the Wall Street Journal.

Debt as percent of GDP - US, Italy, Greece, others have debt 100+ of GDP

Shifting debt: The International Monetary Fund provides an interactive map on debt levels as percentage of GDP from 1800 to 2015, with the most recent year shown above (Source: IMF

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