Governance failures, poly-crisis highlight limits of global economic models

Economics must move out of the mathematical measurement boxes in which it has entrapped itself

The global economy has been shaken by the breakdown of global governance. The UN is unable to prevent the ongoing genocide in Palestine and stop wars that have broken out in Europe, West Asia, and Africa. Global coordination of finance and trade has ended: Control of the dollar has given the US control of the global financial system. Climate change, a global problem, has become ungovernable. Demographic changes are another global problem requiring new solutions, as I will explain later. All these systemic problems must be solved simultaneously.

 

Daron Acemoglu, Simon Johnson, and James Robinson (AJR) have won the 2024