Sleepwalking on Megathreat Mountain

By Nouriel Roubini

2023.01.19

Where once interest rates were too low – or even negative – they have now been rising fast, driving up borrowing costs and creating the risk of cascading debt crises. The age of hyper-globalization, free trade, offshoring, and just-in-time supply chains has yielded to a new era of deglobalization, protectionism, reshoring (or “friend-shoring”), secure trade, and “just-in-case” supply-chain redundancies.

Moreover, new geopolitical threats are increasing the risk of both cold and hot wars and further balkanizing the global economy.