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The Big Picture brings together a range of PS commentaries to give readers a comprehensive understanding of topics in the news – and the deeper issues driving the news. The Big Question features concise contributor analysis and predictions on timely topics.

Will 2023 Be a Year of Economic Crisis?

Dec 15, 2022

War in Ukraine. Protests in China and Iran. Energy shortages in Europe. Protectionism in the United States. Skyrocketing debt in developing countries. And soaring inflation and slowing growth almost everywhere. The last 12 months have piled one challenge for the global economy on top of another.

In this Big Question, we ask Anat Admati, Jim O’Neill, and Eswar Prasad whether a major crisis is imminent.

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Per Kurowski Dec 31, 2022

Current bank capital requirements are mostly based on perceived credit risks, not misperceived risks or unexpected events, e.g., covid, inflation, war
In 2023, will banks stand there naked, just when they’re needed the most, just when its hardest to raise bank capital?
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John Alexander Dec 16, 2022

"Unless and until we diagnose the problems properly and fix the rules of the game, our world will be in peril."

Undoubtedly true, while the rules of the game are unlikely to be made rational. Rationality is not much wanted today. The fiscal system we know conveys vast quantities of capital upward to the corporate establishment, which in deadly earnest foments (i) superfluous consumption and, with or without intention, (ii) the generation of carbon dioxide. One may reasonably suspect that this madness will cease only when the atmosphere, the only one we have, is on average too hot to allow the further survival of our deeply flawed civilization.
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