Economists can no longer ignore geopolitics, yet the implications of a fragmenting macroeconomy are complex and uncertain. Globalisation is not ending, but it is evolving. Economic power is diffusing to Asia and the global south. Conflict, climate risks, and geostrategy are putting the global order under strain. And policy makers are busily pursuing economic statecraft, catalysed by events, politics, and a need to build a more resilient and sustainable economy. A ‘continental drift’ is underway.
Read Joe Little’s The Continental Drift.