Coming out of the 2007–8 global financial crisis, most economists blamed sluggish economic growth on lack of demand.
the supply constraints stemmed from more than just the pandemic.
segments of the population exited the labor force at unusually high rates,
post-pandemic rewiring of global supply chains to aim for more “friend shoring” and “near shoring.”
Liquidity-charged financial markets decoupled from the real economy, which reaped only limited benefits from these policies.
The result was financial market volatility that, if sustained, could threaten the functioning of global financial markets and further damage the economy
encouraging a significant chunk of global financial activity to migrate from highly regulated banks to less well-understood and regulated entities such as asset managers, private equity funds, and hedge funds.
resilience, optionality, and agility
Three new trends in particular hint at such a transformation and are likely to play an important role in shaping economic outcomes over the next few years: the shift from insufficient demand to insufficient supply as a major multi-year drag on growth, the end of boundless liquidity from central banks, and the increasing fragility of financial markets.
Glasp is a social web highlighter that people can highlight and organize quotes and thoughts from the web, and access other like-minded people’s learning.