The forthcoming US election is a momentous one. Many in the US argue that it is the most important US election in living memory for several reasons. Others abroad agree because who becomes President has enormous potential consequences not just for the US, but for the rest of the world. From an economic perspective, the …
Capital markets are increasingly unmoored from the real economy
Imbalances in the financial sector or the real economy – the usual trigger for recessions – have been markedly absent from the current global economic downturn. Instead, the cause this time was a government-mandated shutdown of the economy owing to a global health crisis. The end of shutdown will see economic growth resume (as indeed …
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Globalisation is not the cause of the pandemic
Since the appearance of COVID-19, there has been a massive decline in global trade. World Trade Organisation figures suggest that it could fall be about a third this year. But some context is required here. The reduction is taking place mainly due to the voluntary shutdown of the global economy to fight the Coronavirus. This …
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