Gillian Tett, an acclaimed Financial Times columnist and expert in economic anthropology, shares her insights on today's pressing economic challenges. She discusses the potential impact of a second Trump presidency and the ongoing battle against inflation in the UK. Tett also delves into the transformative effects of AI on our lives and how an anthropological perspective can illuminate cultural shifts influencing global investments. With a unique blend of economics and anthropology, she offers a thought-provoking view on the complexities reshaping our world.
Incorporating environmental factors and the impact of climate change is crucial for a comprehensive understanding of economics.
Regulating artificial intelligence in finance is essential, but the lack of understanding among governments and regulators poses risks.
A second Trump presidency could have significant consequences on the global economy, necessitating cautious preparations.
Deep dives
Embracing behavioral economics and expanding the economic lens
The economic profession has made progress in embracing behavioral economics, which takes into account the influence of psychology, culture, and sociology on economic behavior. This shift has contributed to a wider understanding of how markets and economies function. However, more needs to be done to incorporate environmental factors and the impact of climate change into economic thinking.
Challenges and potential of AI in the financial sector
Artificial intelligence (AI) has the potential to revolutionize many aspects of the finance industry, but there are challenges in effectively regulating it. The shift from symbolic systems of AI to statistical systems has been driven by a limited group of experts. The lack of understanding about AI among governments and regulators poses risks in addressing its impact on finance and the broader economy. Regulation and control are necessary, and existing legislation related to counterfeiting and watermarking can be adapted for the AI sector.
Implications of a potential second Trump presidency
A second Trump presidency is a possibility, and its impact on the global economy raises concerns. Revenge and a reshuffling of bureaucracy are foreseen if Trump returns to power. The geopolitical landscape is more dangerous than during his first term, which further complicates the situation. The future response of NATO and Europe is uncertain, and there is substantial scenario planning being conducted. The uncertainty surrounding a second Trump presidency could have far-reaching consequences and necessitate precautions.
Challenges of Poly Crisis and Volatility
The key challenge in Western economies, particularly Europe, the US, and Britain, is the wide range of outcomes and volatility expected in the next few years. Volatility is not limited to financial markets; it extends to politics, environmental events, and geopolitics. The stock market, dominated by tech giants, is at risk of collapse if faith in these companies crumbles. Overall, extreme uncertainty and volatility have become the norm, contrasting the assumption of stability and predictability in the past.
Shifting Dynamics in Government and Globalization
There is a cognitive shift occurring in our understanding of globalization, free markets, and democracy. While globalization still exists, it faces fragmentation due to protectionism and financial barriers. Government intervention has become normalized, even in countries like the US, as industrial policy gains traction for national security reasons. Democracy is being challenged, with autocracies surpassing democracies in certain regions. The world is witnessing a return to a historically more volatile state, challenging the assumptions of progress and stability.
Gillian Tett is one of the world’s most in-demand economists. An acclaimed columnist and author at the Financial Times, she has long used her training as an anthropologist to break new ground on economic affairs, notably predicting the 2007–8 financial crisis after she observed the way bankers were behaving around the world.
In partnership with Y TREE, In October 2023 she came to the the Intelligence Squared Economic Outlook stage to explore the biggest challenges we face today with BBC broadcaster Jonny Dymond. What are the potential implications for the global economy of a second Trump presidency? Will the Conservatives be able to rein in inflation in time for next year’s general election? How fast will AI transform our lives for better and worse? And what can an anthropologist’s insights teach us about the cultural shifts driving global investments?
Y TREE provides pure financial advice, powered by the latest technology, combining data, technology and human experience to provide a layer of intelligence over your financial life. To find out more visit:
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