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Monetary Policy Debates in the Age of Deglobalisation
This article is the fi rst in a series of two articles on monetary policy debates in the age in which deglobalisation is a buzzword. The ongoing monetary policy debates of the age will be discussed by focusing on macroprudential measures, capital controls and central bank independence in Part II.
In a recent article, Kornprobst and Wallace (2021) defined deglobalisation as a movement towards a less connected world, characterised by powerful nation states, local solutions, and border controls rather than global institutions, treaties, and free movement. If this is the definition of deglobalisation, then globalisation must be a movement in reverse. Karatani (2012) shows that, like a pendulum, the world has been swinging between globalisation imperialist hegemonic mode, and deglobalisation—liberalist hegemonic mode, for centuries.
And there have been many others, among whom we mention Andre Gunder Frank. He argued in many books, articles, and talks that the world had been global for millennia. Since we agree with Frank, we believe globalisation and deglobalisation are misnomers of these phases and refer the readers to Karatani (2012) for his definitions of imperialist and liberalist hegemonic modes. Nevertheless, we continue using the words globalisation and deglobalisation in the rest of the article to join the ongoing debates. We focus on the monetary aspects of the globalisation–deglobalisation cycles, leaving the trade aspects and others aside.
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