Facing a Marked Global Reversal

Joe Stiglitz is pesimistic aboout globalization:

Facing a marked global reversal, by Joseph Stiglitz, Financial Times: 2011 will be a hard year for globalisation. ... America’s quantitative easing is now viewed as an update of the policies that marked the Great Depression. The world is waking up to the way exchange rates can be used in self-promotion at the expense of others...

Such beggar-thy-neighbour policies didn’t work in 1930s, because countries responded in kind. Today the same will happen. Indeed, emerging markets are already responding... The result? More uncertainty in financial markets, greater fragmentation of capital markets, and a marked reversal in globalisation.

Globalisation’s cheerleaders will thus face an increasingly hard time, as the boom in Asia is seen to come at the expense of jobs elsewhere. .. Those Americans and Europeans who risk losing their jobs will be especially vocal in protest. ...