The World Economy Is Swerving, and the Destination Is Unknown by Mohamed A. El-Erian
The days of unfettered globalization, multilateral rule of law, commonly accepted limits on economic statecraft, and widely shared macroeconomic objectives are now long gone. A perpetual, directionless transition is our new reality, and corporate executives, investors, and policymakers must adapt accordingly.
PHILADELPHIA—For decades, companies, investors, and policymakers operated on the comforting assumption that the global economy was underpinned by a relatively stable equilibrium. Macroeconomic and financial shocks were treated primarily as cyclical disruptions that could be managed to put things back on track toward a predictable destination—that of per capita GDP growth within a continuously globalizing economic and financial order. But this paradigm is now being challenged by geopolitical tensions, the weaponization of economic relations, the rapid advance of new technologies, and other factors.
