The war on inflation has not yet been won, but central bankers are winning. And the negative impact has not translated into lower economic growth or recession.
In the past 15 years, global peacefulness has fallen by more than 3%. Old and new conflicts, the pandemic and our political and cultural polarization are the main culprits.
Global Finance editor Andrea Fiano interviews Ásgeir Jónsson, Central Bank Governor of Iceland during Global Finance's World's Best Bank Awards at the National Press Club in Washington, DC on October 15th.
In our cover story this month we look at the changing nature of globalization and the impact it is having on the balance of political and economic power across the world. With many emerging markets building huge foreign currency reserves and others beginning to demonstrate the influence they can exert simply by restricting their exports—particularly if those exports include energy—there is no doubt that a fundamental power shift is under way.
One aspect of globalization that is often overlooked, though, is its role in the spreading of knowledge. From central bankers sharing tips on how to run their economies to business leaders mining the Internet to find out how best to manage their supply chain, almost everyone involved in global business and finance has more access to better information than ever before. The spread of that information is helping emerging markets dodge the pitfalls they’ve stumbled into in the past. It’s also leveling the playing field between the developed and developing worlds.
Inevitably, there will be many who perceive globalization to be a bad thing, but the benefits that arise from it in terms of poverty reduction, increased economic efficiency and, in many cases, political and economic stability are inarguable.
Spreading peace and love around the world will take a bit more time, but understanding? We’re well on the way.