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10/12/2008

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Ira Goldstein

Before we hastily take comfort in the fact that in the Great Depression countries were pursuing protectionist policies, whereas in recent times the great positive force has been globalisation, we should remember that economic crises such as the Great Depression can reverse globalisation, lead to protectionism, encourage countries to pursue economic (and political) isolation and exclusive economic blocs, and bring to power regimes that pursue policies which lead to international economic and political conflict.

Is anyone giving enough attention to these risks arising from the financial and economic crisis of today? Maybe we can learn from studying how economists of earlier generations thought about the economic forces making for peace and war - such as Lionel Robbins, or Keynes (e.g. Markwell's book on Keynes and International Relations).

The question might become not just why warnings of financial and economic crisis were ignored, but why the consequences of this for domestic politics and international relations were ignored also.

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