Mehrling Writes on Imaging the ‘After Coronavirus’ (AC) Economy
Perry Mehrling, Professor of International Political Economy at the Frederick S. Pardee School of Global Studies at Boston University, published a blog on the Money View (April 3, 2020) on “Imagining the AC (After Coronavirus) Economy”
Mehrling argues that in the short run, “the economic crisis will be highly differentiated, and the recovery as well.” In the long run, the challenge facing us will be the “challenge of reconstruction, which [is] about resisting the drift to autarky and nationalism and embracing instead the challenge of re-globalization.”
He explains:
Today not only is the U.S. no longer the dominant global economic force, but it is also (at present) the global epicenter of the health crisis, and the economic crisis as well. The U.S. will not come out of this war unscathed. Indeed, the problem of reconstruction is likely to loom as large or larger in the U.S. as elsewhere.
… At the global level, the challenge is to avoid the drift to autarky and nationalism, and the way the U.S. can best help is by getting its own house in order, first by recognizing that return to status quo ante is impossible, and then by building internal consensus around a possible U.S. AC economy.
Read full piece here.
Perry Mehrling is a Professor of International Political Economy at the Pardee School and teaches courses on the economics of money and banking, the history of money and finance, and international money. He is the author of The New Lombard Street: How the Fed became the dealer of last resort (Princeton 2011), Fischer Black and the Revolutionary Idea of Finance (Wiley 2005), and The Money Interest and the Public Interest (Harvard 1997). Recent papers and video are available on his website, ‘one stop shopping for all things ‘money view’.