Bloomberg Businessweek

How to Fix a Fragile System Before It’s Too Late

The world seemed to have figured how to grow in sync. But without better policies, that exceptional pickup may end soon

Brexit, tariffs, currency meltdowns in Argentina and Turkey, a China growth scare, and a financial near-implosion in Italy—to name just a few events—have surprised many policymakers, companies, and investors in the past two years. The inclination is to treat each as the product of the particular circumstances of each country; and the implication is to play a game of whack-a-mole with each.

There’s validity to such a case-by-case approach. But it risks overlooking that something deeper is going on here—a common thread, if you like. And the ramifications will be accentuated by what are now widening inequalities brought about by differing growth rates and policies in advanced economies as the U.S. increasingly outpaces other economies.

The more this is understood, the better the world will be able to navigate surprises. And if politicians and companies step up more forcefully, the higher the probability of avoiding most of them altogether.

It wasn’t supposed to be like this. In the 10 years since a global financial crisis damaged many lives and almost tipped the world into a multiyear depression, efforts have been made to strengthen the banking system and reduce its risk of contaminating

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