The Doom Loop

Global institutions have failed to adapt to today's political-economic realities. What went wrong, and how can we reverse our descent into chaos?

The United States is no longer the world’s undisputed superpower. China and India increasingly flex their economic muscle, as the West’s share of global GDP steadily declines – and America’s rules-based system risks becoming irrelevant. In business, competition brings efficiency, balance, and innovation. But not in the marketplace for global power.

Acclaimed economist Eswar S. Prasad argues that the very forces expected to stabilise the world order are fueling disarray. Globalisation has deepened inequality in many countries, stoked political backlash and triggered trade wars. Economic institutions like the IMF and WTO are no longer fit for purpose. The rise of 'middle powers' like South Africa, Brazil, and Indonesia once suggested multipolar stability; but today, such economies are forced to pick sides in the intensifying US–China struggle for hegemony.

Prasad’s clear-eyed, bracing prose contends that we are caught in a destructive feedback loop between economics, domestic politics, and geopolitics. With instability the new status quo, we need radical solutions to reinvigorate the world economy, prioritise common aspirations – and halt the downward spiral.

Praise for The Future of Money

‘A road map for money managers, market strategists, and others seeking to understand this new world.’ – Barron’s

‘Money shapes economies, economies shape nations, nations shape history. It follows that the future of money is profoundly important. Here is a definitive report on where we are and where we are going.’ – Lawrence H. Summers, former Secreta ry of the Treasury

‘Prasad manages to make the financial system intelligible and interesting without resorting to shortcuts and exaggeration…Previous overhauls mainly improved existing systems, he notes. The end of cash – likely within a decade or two – is revolutionary.’ – Economist

About the Author

Eswar S. Prasad is Nandlal P. Tolani Senior Professor of Trade Policy and Professor of Economics at Cornell University, and a senior fellow at the Brookings Institution. His publications include The Future of Money, a Book of the Year in the Financial Times, The Economist, Foreign Affairs and The Week.