The global shocks have proven to be particularly damaging for China because they have come on top of an ongoing, secular loss of competitiveness.
When the billionaire investor Ray Dalio recently predicted that the Chinese renminbi will become a global reserve currency, the world took notice.
For an all-too-brief period between the late 1980s and the late 2000s, the world was characterised by convergence, both ideological and economic. The West and the Rest agreed that an open liberal order was the best way to increase prosperity. Now, however, this ideological order threatens to unravel, with adverse consequences for the world economy.
The global shocks have proven to be particularly damaging for China because they have come on top of an ongoing, secular loss of competitiveness.
When the billionaire investor Ray Dalio recently predicted that the Chinese renminbi will become a global reserve currency, the world took notice.
For an all-too-brief period between the late 1980s and the late 2000s, the world was characterised by convergence, both ideological and economic. The West and the Rest agreed that an open liberal order was the best way to increase prosperity. Now, however, this ideological order threatens to unravel, with adverse consequences for the world economy.
