A top Obama administration economist said the pink scenarios being put in place for a rapid recovery from the COVID pandemic tend to ignore global tipping points in Asia and Eastern Europe.
Peter Orszag, chief budget officer, said: “My foreign policy and my national security friends are more concerned about the risk of conflict between China and Taiwan, but also Russia and Ukraine, more than likely. is any feature that discusses macroeconomics ”. the Obama administration and is currently the Chief Executive Officer of Financial Advisor at Lazard.
“These risks are not included in macroeconomic forecasts, or mostly in the financial market,” he said.
Any increase in these smoldering conflicts could “change the sunny picture being painted for advanced economies,” notes Orszag, in a webcast at the Peterson Institute for International Economics.
Also underestimated are the effects on emerging economies on capital flows, debt and economic performance of the conflict between the US and China.
The type of Cold War technology between the two countries is spilling into a growing number of areas, he said, and will leave more nations stuck in between, he said.