Tom Keene's EconoChat

Give us a sense of where the debate on globalization is right now.
Well, it's been a very mixed bag. Lots of people in many countries have benefited tremendously from globalization, but it's brought instability and financial crisis with it as well. And I think we have a better sense that we need a much more balanced model.

You talk about the political trilemma of the world economy. What do you mean?
I think the main message for the democracies of the world is that you cannot have a fully globalized world economy without a significant amount of political integration and transnational cooperation, which is simply not in the cards. So the only realistic possibility is we rein in our ambitions on how far we can push economic globalization.

What is the trade regime you would like to see?
The healthiest kind of globalization we could experience is one where we're actually not pushing it too far. There have been periods when we had too little globalization and the nation state was too powerful and there was too much protectionism. I think right now the risk is we're trying to push economic globalization in the other direction. So the kind of regime that I want to see is one much more balanced between the requirements of the world economy and the room that national policy makers need to respond to the various challenges they meet at home.

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