Reimagining Security and Rethinking Economics
Economic and financial issues nowadays tend to be discussed in intellectual silos, by specialists who give little mind to security concerns or the interplay between national and international objectives. But sooner or later, economists will realize that global security demands a new approach, just as it did in the interwar period.
PRINCETON – Now that the world is facing a trade war and the growing possibility that the West could find itself in a real war, we would do well to reconsider the lessons of the interwar period.
Many of today’s economic and security disorders are frequently attributed to the 2008 global financial crisis. In addition to exposing the flaws in conventional economic policies, the crisis and its aftermath accelerated the global rebalancing from the Atlantic to the Asia-Pacific region, while fueling political discontent and the rise of anti-establishment movements in the West.
Likewise, the Great Depression of the 1930s is usually thought to have produced a seismic shift in economic thinking. According to the conventional narrative, policymakers at the time, having vowed never to repeat the errors that led to the crisis, devised new measures to overcome their economies’ prolonged malaise.
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