Globalisation and whose recovery?

Michael Roberts Blog

The finance ministers of the top 20 economies of the world met in Chengdu, China this weekend and they were worried.  Global economic growth continues to slow and monetary policy (central bank easing through cutting interest rates and engaging in ‘quantitative easing’) does not seem to be working in restoring levels of economic growth achieved before the Great Recession.

And the decision of the British people to vote to leave the European Union is an extra shock to world capital economy. Brexit implies further slowdown in world trade expansion; one way that the G20 financial authorities hoped could get global growth going again.  The prospect (still unlikely) that Donald Trump could win the US presidential election in November also raises the risk that the largest and most important economy in the world could move towards protectionism on trade and finance, as well as imposing and supporting tighter restrictions on the…

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