Brexit delay will not postpone deglobalisation

In my recent VOX column I argue that deglobalisation is here and enforces a structural transformation of the world economy. Political turbulence can perhaps hasten this process. To some observers, delays to the big topical trade shocks may therefore seem to help to turn the tide. Brexit and ‘Make America Great Again’ are, however, symptoms of underlying processes that have already generated significant trade and investment uncertainty and this is already exercising a concrete impact on trade and investment flows as firms and consumers are adjusting behaviour in anticipation of further trade shocks. The delay of the deadlines provides a pause at best. It is therefore pertinent to rethink global economic governance and make it resistant to deglobalisation. Read more

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