- Home
- Publications
- The Macroeconomics Of De-Globalisation
The Macroeconomics of De-Globalisation
Downloads
The macroeconomics of de-globalisationRelated Themes
Macro-Economic Dynamics and PolicyThis is a preview from the National Institute Economic Review, August 2020, no 253.
The Covid-19 pandemic has revived protectionist measures. The most proximate trigger for this switch is a desire to prioritise national security interests and public health concerns over the long- standing economic rationale for free trade, which is to maximise productivity (Ricardo, 1817) and tap new markets. The macroeconomic consequences of protectionism will depend on the specific form that it takes but, if history serves as a guide, a more restrictive global trading environment is likely to reduce cross-border capital flows, bear down on productivity and economic growth, raise the neutral global interest rate, R*, and exert upward pressure on wage and price inflation. Low-and middle-income countries that have benefitted from globalisation are particularly vulnerable in this environment, as are workers that are exposed to global trade in developed economies.
The analysis in this Box has been prepared by Iana Liadze and Amit Kara.
Related Blog Posts
Public Debt Sustainability and Fiscal Rules
Stephen Millard
Benjamin Caswell
05 Feb 2024
4 min read
Related Projects
Related News
Letter to the Financial Times: Is Perfidious Albion About to Make a Return?
14 Jun 2024
3 min read
Call for Papers: Lessons From Quantitative Easing & Quantitative Tightening
09 Feb 2024
1 min read
Related Publications
How Geopolitics Shapes Chinese Economic Policy: An Introduction to ‘Asymmetric Decoupling’
09 May 2024
Global Economic Outlook Box Analysis
Everything You Wanted to Know About the US Budget Deficit and Debt But Were Afraid to Ask
09 May 2024
Global Economic Outlook Box Analysis
To What Extent Has the Recovery and Resilience Facility Supported the EU Recovery from Covid?
09 May 2024
Global Economic Outlook Topical Feature
Related events
2024 UK General Election: The Economy and Living Standards
Assessing Cycles and Structural Changes in Markets
Business Conditions Forum
With an election expected to take place at some point in 2024, we begin the year by focusing this quarter’s Business Conditions Forum on the following topics: Can we expect…