Justin Fox – Maybe This Global Slowdown Is Different

The global economy is slowing down. A coupleĀ of theĀ big emerging-market economies that drove much of the growth during the past 15 years have hit a wall, and the question of the moment is whether the biggest of them, China, is in real trouble too. Commodity prices are tanking. Trade volumes are down. The Baltic Dry Index of shipping costs, which rebounded from a record low earlier this year, is falling again.

TheseĀ are all characteristic of a cyclical downturn. And thisĀ isĀ a cyclical downturn — oil prices will rise again someday. So will emerging-market stock and bond prices.

But there could also be something elseĀ afoot. We could be seeing earlyĀ signs of longer-termĀ changes in the global economyĀ — changes that could be enormouslyĀ positive, but also have the potential to upend a lot about how the world works today.

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