Losing Control

Cover Losing Control
Losing Control
Stephen King
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The emerging nations have become an increasingly important destination for Western exporters, but it’s hard to argue that higher exports, on their own, are a sign of Western success. Capital markets have become significantly bigger, but they have also become increasingly distorted through the dominance of decisions made by sovereign nations as opposed to the decisions of millions of underlying investors. Inflation targeting is now a cornerstone of Western policymaking, yet is often poorly positi...oned to deal with the real and monetary shocks stemming from economic developments in the emerging nations. Indeed, a narrowly based focus on price stability has not provided the guarantees of economic stability many policymakers hoped for.
    There is a simple reason why the traditional barometers of economic success have failed. Many of our economic barometers now tell us less about macroeconomic health and more about the winners and losers stemming from globalization. The old economic certainties have gone, while the gravitational pull of the emerging nations has increased.


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