June 26 (Reuters) – If global policy makers are wrong about
globalization, and they could be, we may be in for more low
growth, low rates and the high asset prices they support.
At issue is the bedrock belief that globalization lifts all
boats, making us all richer by allowing the flowering of
individual countries’ comparative advantage.
That some classes of people – low-skilled workers in the
West, for example – have not done well out of globalization
should by now be obvious.
The big question is whether this is a transitional problem,
a distributional one or something closer to a permanent
One person who has thought interestingly about these issues
is Stephen Jen, a hedge fund manager at SLJ Macro Partners. Jen
argues, picking up on points made by economist Paul Samuelson a
decade ago, that lagged effects of globalization may be behind
some of the peculiarities in both markets and economics we now