Macroeconomists typically approach globalisation in terms of greater market access. More goods and services are available for consumption, budget constraints are loosened by the ability to borrow and lend overseas and access to external asset markets allows greater diversification of risk. Yet the domain of economic policy is primarily the nation-state; fiscal and monetary policies operate mostly through the domestic economy. At this simple level, globalisation can be shown to lead to higher standards of living.Background

 

Economists also have specialised models for specific markets, which can raise challenges to this macroeconomic approach. The current age of globalisation – deeper integration of economic activity across national borders – began after the Bretton Woods era. For the most part, it has supported rising prosperity, particularly in large low-income countries.

 

China’s Premier Xi recently emerged as its unlikely champion. As long as prosperity is broadly aligned with other social objectives, such as inclusion, fairness and environmental sustainability, then globalisation is likely to be supported. However, several recent surveys of public opinion have indicated doubts about its efficacy. Western politicians have responded with increasingly nativist agendas, implying globalisation may have gone too far.