Perceptions of a measurable deterioration in current trade relationships could therefore potentially dent the confidence and animal spirits that are currently driving the strong economic momentum – and that policymakers worldwide have succeeded in restoring after many years of actively counteracting the effects of the crisis.
The impact could be even worse if the deterioration in trade relationships would be compounded with a weakening of the international financial regulatory agreements that were reinforced in the wake of the global financial crisis and have made the global financial system safer.6 See Cœuré, B. (2017), “The perils of isolation”, speech at the Council of Foreign Relations, New York, 19 April.