Van Steenis: Globalization Going From Growth to Walls

The transcript discusses the impact of Donald Trump's policies on market trends, focusing on the shift from bonds to equities and the potential for GDP growth. It highlights global economic volatility due to events like Brexit and China's market fluctuations. The discussion at Davos centers on globalization, trade policies, and the rise of populism. The concept of financial balkanization is introduced, emphasizing the creation of financial barriers. The transcript concludes with an analysis of US trade policies under the new administration and their implications for global markets.

What was one of the major mistakes made by Japan and the ECB last year?

• Reducing bond purchases

• Increasing fiscal spending

• Going to negative interest rates

• Raising interest rates too quickly

What was a significant factor that unsettled investors last year?

• US-China trade war

• Rising inflation

• Brexit

• Weakness in commodities

What is a key theme expected to dominate discussions at Davos?

• Climate change

• Globalization

• Technological innovation

• Healthcare reform

What concept did Mr. Vonstein introduce in the context of finance?

• Protectionism

• Balkanization

• Financial globalization

• Mercantilism

What is a potential challenge for the UK post-Brexit?

• Managing immigration

• Reducing unemployment

• Increasing domestic inflation

• Securing global trade deals

What is a concern for emerging markets in the current global economic climate?

• Rising commodity prices

• US trade policies

• Increasing labor costs

• Decreasing foreign investments

What is a significant factor affecting the US dollar's strength?

• European economic policies

• Global oil prices

• Chinese currency devaluation

• US interest rates