In the last few weeks, the world economy has seen worrying turmoil. Whether or not a recession is imminent, there has certainly been a collapse of confidence.

What has investors so rattled? There are long-term factors in play, like demographic trends and a slowdown in technological change. But what seems finally to have dawned on the markets is that globalization is no longer supported by the combination of investor-friendly economic policy and congenial politics they have long taken for granted.

In the Trump administration, the nationalist theatrics of economic policy have reached new heights. The White House has responded to the wave of recession talk by pillorying the Federal Reserve Board and threatening more tariffs against China.

Originally published in The New York Times. Read full article here (subscription may be required).