The practical challenge is that once we have such a theory, we need to reach a shared understanding on two specific aspects: first, to what extent are advanced economies responsible for the cross border spill over impact of their domestic policies, and second, what is the framework of rules that should govern currency interventions in the face of volatile capital flows. Protectionism 18.
In the post-crisis world, there may not actually be “deglobalization” but the earlier orthodoxy that globalization is an unmixed blessing is being increasingly challenged.