According to Kaushik Basu the global economy and capitalism are at a crossroads, that is why we need a new map of economics. /Project Syndicate, 7/24/2021/
It is always the case however, when geopolitics reshape world power’s grand strategies. Beside all economic, social and technological changes this is exactly the main source for changing economic thinking.
During the former American-Soviet cold war, the challenges of the Soviet model helped a lot to improve the living standards of the Western economies in the 60s and 70s. This might happen to the partners of the Western Alliance facing the challenges of a rising China in the areas of infrastructure, income distribution, job creation, health care, education and the consumption of culture.
Finally, the daydreaming to halt the rise of China will end. This will be the beginning of a new economic thinking. New government policies aiming for more social justice and less inequalities will be launched. It has already started in the U.S.
The new world of asymmetric geopolitics will hurt globalization and growth but will help social justice and economic fairness.
Governor Matolcsy, MNB, the Central Bank of Hungary