Martin Wolf on the World in 2022

In this book, Martin Wolf examines the strained relationship between capitalism and democracy, highlighting how economic and political changes have undermined this marriage. He argues that despite its recent failings, such as slowing growth and increasing inequality, democratic capitalism is still the best system we know for human flourishing. Wolf emphasizes that capitalism and democracy are complementary opposites that need each other to thrive and that their separation would be catastrophic. The book concludes by discussing what needs to be done to address the threats to liberal democracy itself.

The Shifts and the Shocks is a detailed examination of the financial crisis that began in 2007. The book is divided into three parts: 'The Shocks,' which describes the financial crisis and post-crisis austerity policies; 'The Shifts,' which explains the underlying changes that led to the crisis; and 'The Solutions,' which discusses potential reforms in economic theory, the financial system, secular stagnation, and the Eurozone. Written by Martin Wolf, the book offers a persuasive and complete account of what the crisis should teach us about modern economies and economics, with a focus on radical reforms needed to avoid future crises.