Globalization and Nationalism: Retrospect and Prospect

Maurice Obstfeld

No 14990, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Recent events have highlighted areas of conflict between economic integration with the outside world and the demands of domestic electorates. Historically, the tradeoffs have always become sharper in periods of crisis, such as the present. After reviewing the U-shaped progress of globalization since the nineteenth century, this essay reconsiders John Maynard Keynes’s views on “national self-sufficiency†in the early 1930s. I argue that the postwar Bretton Woods system he helped to create evolved from those views as a balanced middle ground between market forces and governments’ desires for domestic economic stability. The gradual erosion of that balance in favor of the market has helped produce discontent over globalization and more nationalism in politics. Enhanced multilateral cooperation in key areas offers the hope of supporting globalization while better meeting voters’ aspirations. Despite daunting political obstacles to global cooperation these days, collective action challenges in areas like climate, cybersecurity, and health – alongside economic policy – are only becoming more pressing over time.

Keywords: Globalization; Deglobalization; Nationalism; Populism; Multilateralism (search for similar items in EconPapers)
JEL-codes: F52 F53 F60 N20 N40 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-his, nep-hpe, nep-int and nep-pke
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Citations: View citations in EconPapers (1)

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Journal Article: Globalization and nationalism: Retrospect and prospect (2021)
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