What makes the current economic situation extra challenging is that external shocks, like the ones we are experiencing today, might take time to fully materialise. We learned this from the two oil crises in the 1970s. The oil shocks in 1973 and 1979 led to an increase in banking provisions that only peaked in 1983.
Sovereigns were purportedly ready to put historic conflicts in abeyance as cultures and ideologies coalesced around the principles of liberalism, freedom, and democracy. Detractors have argued that this end-of-history thesis is a "mirage" (Kagan, 2007). Intervening geopolitical events appear to have upended the notion that History is all but written, that ideological conflicts will inexorably abate.