Global financial governance: Need for a new approach

The post-pandemic economy is like the Mona Lisa. Each time you look, see something different. Following chaos in banking industry, many analysts are now convinced world heading for a “hard-landing” recession. Few seem to expect “no-landing” scenario, which remains untroubled by rising interest rates—a fashionable opinion just weeks ago and one itself supplanted common view late 2022 that mild recession was certain. When panic struck, no had slightest idea what Federal Reserve would then do with rates March—some investors expected rate rise, some change, cut—and next few meetings looked equally unpredictable. Perhaps simply more volatile. In past year, Europe has seen its biggest land war seven decades, supply-chain snarl-ups, an energy crisis, period of turmoil. teaches us something; global financial development evolves as we manage various recessions. this paper, have found out 2007-09 2023 banks run things common; e.g., unemployment rose, there were mass lay-offs similar trends respect their effect on productivity. earlier spread globally, but recent limited US Credit Suisse banks. previous caused because risky mortgages current due liquidity problem faced held, so-called, highly safe illiquid treasury bonds, long-term bonds issued when inflation lower Central Bank raised rates, purchasers buy those at government available very discounted high inflation. This problems they not position pay money depositors who en-masse applied withdrawal, following sentiment distrust them. Yet also deeper, structural changes play. first relates covid-19 disruptions. lurched from crashing soaring growth lockdowns came went. played havoc “seasonal adjustments” most economic numbers. February Bureau Labour Statistics changed factors it applies inflation, makes interpreting monthly much difficult. Annualized core final quarter “increased” 3.1% 4.3%. It harder than normal understand euro-zone Do be surprised if sfumato while yet.