Welcome to the new century of geoeconomics

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Last weekend, in Washington, near the White House, collected with dozens of economists, like the IMF and dozens of organizations, to discuss the situation “Geoeconomics”.

GeofWhat? Some readers may ask. Not surprising: until recently, this word was used less because it had modern norms.

Because this is what governments can use to play energy games from economic and financial policy. However, most of the intellectual frameworks in the 20th century – most of the Western experts are the Qur’an – this is generally assumed that it is not a rational economic policy, not grubby politics, but not grubby policy. Politics seemed to be a derivative of the economy – not otherwise.

Already. The U.S. President Donald Trump shocked many investors in the commercial war, because the Neoliberal economic standards appear so irrational. However, it reflects a transition to a world that the economy is not only in America, but not only in America, but not only in America, but to a world.

That is, universities like John Hopkins, Dartmouth, Like and Stanford wants to expand “Geoeconomics” programs (with the final use) bench For this purpose), along with the subjects Like the IMFthe milk institution and Atlantic Institute. And there are also the former US Treasury official Dane Alivarius Now calls companies “CGO” or Prime Geopolitical Officer – to walk in the role of the Geopolitical Officer of the Geopolitical Officer “or to walk in trade and statecraft”

It is unknown if companies actually accept this idea. However, in the meantime, investors and business leaders will work well to celebrate five key points about this geoeconomic dispute.

First, this phenomenon is not just a man (trump), but the intellectual Zeitgeist, the intellectual Zeitgeist, a few times a few previously seen a type of turning point.

In such a row, a century ago, a century ago, the globalist, the capitalist, who reigned before the First World War, took place when it was expelled by the immorialist vision, nationalist, protectionist policy. The other came after the Second World War, when Keynz had caught the economy. Then, in the 1980s, free market Neoliberal ideas are displaced by a clear clayer.

Intellectual Sarcatch now fits more nationalist protection and this, thus, thus, although several people will receive this shape, although it would be a few.

Second, an important aspect of this zeitgeist turn, the governments are no longer the absolute welfare, but not to focus on relative positions. This difference may sound thinner. But deep, as important as Author a paper by Aaditya Mattoo, The World Bank Economist, Michele Ruta and spells together with Robert Staige.

The reason for this, the “absolute welfare” mentality supports trade cooperation, but they say, “The angry rhetoric,” Trump’s angry rhetoric, “collapsed by opponents” reflects a larger mental turn.

Third, behind this competition, the factor, China is now the difficult dominant of America’s current dominance. This pattern was often seen before, Ray Dalio, hedging fund Provocateurs upcoming book. Investors also need to note that Dalio rarely resolved this conflict is resolved quickly or smoothly.

The fourth, as he appeals to the US and Chinese geoeconomic strategies, followed by the suit in response to other countries. Just see how The European Central Bank competes to develop a digital euroSaudi Arabia develops its own technological stack or uses Japanese treasure holdings as a “card” in trade talks. This means that technology, trade, finance and military policies are mixed in a neoliberal age.

Fifth and finally, the industry policy returned. This started under President Joe Biden in America. But the Trump doubled with tariffs. Look at this to understand this He hits new book named Industrial Policy for the United States According to Marc Fasteau and Ian Fletcher, two economists loved by Maga Crowd. They also emphasize that champion tariffs, as well as samples of South Korea, Japan, China and Germany, but also need other industrial policy.

If Trump will follow their recommendations, it is not known. However, it is clear that the United States is the case where trade is formed in the national interest in the national interest. This will always produce such regions to watch the European suit.

All this will horrify many observers, especially those raised in the neoliberal period. However, do not expect to return to the intellectual pendulum soon – even if the United States cuts several trading deals like Icascyn from Pimco Notes, Trump’s love of tariffs works deep. For better or worse, we should all learn to walk the geoeconomics. We can’t just wish him.

Gillian.tett@ft.com