Less Globalization and Higher Interest Rates in the Future

By Clifford Hwang

The slump in the Chinese stock market and the slowdown in the growth of emerging market economies are worrying leaders across the world. Trade figures show international trade is slowing and even shrinking. Amidst this backdrop, various economies continue to engage in quantitative easing to control inflation. However, an article from BBC suggests that perhaps the slowdown in trade and the problems in various emerging markets will lead to or is currently leading to a contraction in globalization. Globalization once led to controlled inflation; in a less open global economy, it could lead to higher inflation rates in the long run. Read more about the story on BBC.