Moody's Talks - Inside Economics Greenland and The London Consensus
Jan 23, 2026
Andrés Velasco, LSE School of Public Policy dean and former Chilean finance minister, offers sharp perspective on geopolitics and policy. They unpack the U.S. bid for Greenland and what it says about rules-based order. The conversation probes market reactions, Europe’s leverage, rising populism, and the London Consensus as a rethink of policy priorities beyond GDP.
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From Exile To Finance Minister
- Andrés Velasco recounts his Chilean exile and U.S. education after Pinochet expelled his family.
- He used that background to combine academic research with practical policymaking, later serving as Chile's finance minister.
Rules-Based Order Is Eroding
- Andrés Velasco argues the rules-based international order is weakening and democracies must prepare for a more confrontational world.
- He observes market reactions and unified pushback can deter impulsive unilateral actions by powerful states.
Markets Shape Presidential Restraint
- Velasco and Mark note the 'TACO' pattern: Trump often backs down when markets react negatively.
- Market moves, especially equity and bond shifts, act as a practical constraint on impulsive policy gestures.
