This competition can sometimes take the guise of a trade war, as when the US imposed tariffs on Chinese imports. But, perhaps even more significantly and profoundly, competition is felt in the fields of technology and science. Nevertheless, let’s hope that there is enough sense of international cooperation in the ongoing COP26 climate conference in Glasgow, to help the world avoid an environmental crisis.
In the current vacuum of global cooperation, the central banks are an exception. In spite of all the ongoing global tensions and the return of power politics, international cooperation among the central banks is very much alive and functioning. It was crucial in sparing the world from a new recession or depression, when the COVID-19 pandemic hit 20 months ago.