In late summer, there remained a chance that the world might still avoid recession: Japan was in a mild recession, Europe was expected to emerge from a slowdown, and the US was caught between slipping briefly on an economic banana peel and outright recession. Not surprisingly, the dramatic loss of confidence worldwide following the attacks of September 11th has tilted the balance toward recession. Even if the IMF is not yet ready to use the word, the world is in recession. World economic growth, which has averaged 3.8% over the past 35 years and more than 4% last year, is now poised to fall to only about 2%.
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The Chinese government is very good at covering up small problems, but these often pile up into much bigger ones that can no longer be ignored. The current real-estate bubble is a case in point, casting serious doubts not just on the wisdom of past policies but also on China's long-term economic future.
traces the long roots of the country's mounting economic and financial problems.
From semiconductors to electric vehicles, governments are identifying the strategic industries of the future and intervening to support them – abandoning decades of neoliberal orthodoxy in the process. Are industrial policies the key to tackling twenty-first-century economic challenges or a recipe for market distortions and lower efficiency?
From breakthroughs in behavioral economics to mounting evidence in the real world, there is good reason to think that the economic orthodoxy of the past 50 years now has one foot in the grave. The question is whether the mainstream economics profession has gotten the memo.
looks back on 50 years of neoclassical economic orthodoxy and the damage it has wrought.