Explanation of books | Prescription for a Post-Covid World: Resilience

“The Covid-19 pandemic has worked like an X-ray machine, revealing the challenges hidden beneath the surface of many societies,” Markus K Brunnermeier says in the introduction to his book. In fact, the pandemic has hit every country — and the adverse health impact is just the starting point; The virus ended up disrupting every aspect of society and the global economic system.

Complex supply chains that had been built and refined over decades had to be suddenly shut down or broken to prevent or slow the spread of infection. Jobs and livelihoods were lost, inequalities of all kinds widened, governments were forced to pile up millions of dollars in debt to expand forgiveness, and central banks were forced to resort to every avenue possible to stimulate the economy even as health systems, countries, and societies collapsed. They became more isolated and protective.

The shock of Covid-19 has pushed most countries back several years, possibly decades. Just as the world seemed to be breaking free from seemingly endless cycles of lockdown, Russia invaded Ukraine, unleashing consequences that reverberate around the world — from soaring fuel prices to food scarcity to dramatically escalating geopolitical tensions.

In just two years, the global economy has shifted from trying to avoid prolonged deflation to desperately fighting inflation. The post-Cold War consensus on globalization, already under strain since the 2008-2009 global financial crisis, has evolved into a fervent desire to reduce dependence on other countries.

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Was the world prepared to weather these shocks in 2020? Is it ready in 2022? And most importantly, will it be prepared in the future? If so, how?

In The Resilient Society, Princeton University economist Brunnermeier outlines the global economic fallout from the Covid disruption. Many of the book’s main ideas were drawn from a Princeton webinar series called the Marcus Academy, which features influential economists, including more than a dozen Nobel Laureates.

In the end, for the author, the criterion for any society, economy, or indeed the world is “resilience,” or resilience. Flexibility is what distinguishes cane from strong oak, which has the ability to resist. “I bend but I do not break” – this is the essence of flexibility.
After explaining the concept and how societies can be redesigned to become resilient in Part One of the book, Brunner uses Covid to explain the essential elements of resilience management in Part 2. In Parts 3 and 4, he looks at the macroeconomic and global challenges that countries face.

The book came out last year, but the Ukraine crisis shows that although the world has moved on to the next shock, Brunnermeier has been poised to stress the need for endurance. The main lesson of societies

It is to abandon the “just in time” production approach that prioritizes efficiency, and instead move toward a “just in time” approach that allows for safety buffers.

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