The lessons are clear: macroeconomic policy in the globalized economy needs to be even more alert to the dangers of an unsustainable turbocharged boom. However enjoyable it is while it is in process, the bust – potentially also turbocharged – is even more painful.
I will also touch on another, not unrelated, globalization-related theme, likely to be even more relevant to Tanzania, namely the tendency for globalized economies to be structurally incomplete or “hollowed-out” both in productive capacity (concentration on a limited range of economic sectors1) and in the repertoire of macro-fiscal and prudential policy tools (as reliance is increasingly placed on (i) external markets for components or factors of production and on (ii) external institutions and analyses for the design and in some cases delivery of policy.)