Last week, the world’s stock and bond markets swung wildly. They worried about the threat of world deflation, falling oil prices and further systemic weaknesses in the financial system. But perhaps they were most concerned about whether spooked governments had the will to do anything, even if those governments could agree on what that should be. If they can’t manage a co-ordinated response to Ebola or one against the cruelties of Isis, then it is hardly likely they are going to find common ground in managing the fissures in the world economy.

It is not as though there is not the beginning of a policy and intellectual consensus about what is wrong. Inequality is increasingly understood to be poisoning everything; governments cannot continue with business as usual policies; interdependencies have to be recognised and acted on. The problem is doing any of it. [Read more] – Michael’s Blog