The book argues that while globalization and the influence of new technology have pulled the world economy out of recession and while the benefits of world trade are now spread more widely, there is a perception of injustice because of inequality within individual nations. In a detailed region-by-region analysis of the current state of the world economy and using exclusive research carried out by TS Lombard, Dumas shows how the perception of inequality now threatens to destabilize not only politics but also the economic order itself.
Introduction: neo-Luddite discontents 1
1. Globalisation, technology and demographics 13
2. What is a savings glut? 20
3. Financial crisis as excess saving boosts debts 31
4. Savings glut hobbles recovery 36
5. Recovery recovers – but is trend growth slower? 44
6. Income distributed away from the lower middle 58
7. Keynes vs Friedman, the bogus dilemma 69
8. The failure of monetarist solutions 76
9. The folly of inflation targets 80
10. Inflation targets threaten boom–bust 82
11. Tax distortions and avoidance worsen the savings glut 86
12. Japan – fertile ground for populist revolt 89
13. Can China dodge the ‘middle-income trap’? 101
14. Euro Area – growing now, but still divergent 113
15. Will Britain muddle through Brexit? 132
16. Euro-populism – to worsen or to cure global imbalances? 144
17. Summary: Can/should the tide of populism be turned? 152
