The world economy is facing enormous pressures: the aftermath of the pandemic; rising geopolitical tension between the west and China; the accelerating impact of climate change; and the rollout of powerful new technologies.
Against this backdrop, the 2021–23 global inflation shock has already raised serious questions over the consensus around monetary, fiscal and macroprudential policy that was first developed in the 1990s.
This discussion, hosted by Chatham House and Fathom Consulting, explores the implications of recent events and what is coming down the tracks for the consensus global macroeconomic framework. Erik Britton will begin by presenting the case that the macroeconomic policy framework must be judged a failure. Creon Butler will respond with the counterview that, while the consensus macroeconomic framework needs to evolve, and evolve quickly, its fundamental principles still hold true.
This will be followed by an expert panel discussion addressing the following questions:
What does the global inflation shock and other recent events tell us about whether the consensus global macroeconomic framework is fit for purpose?
Does it need reform and evolution, or a complete rethink?
Regardless of what should happen, what is likely to happen to the consensus framework over the next two to three years?