The Two-Speed Global Economy

The global economy just faced its biggest stress test, but your economics textbook predicted it

all. Supply chains froze, shifting aggregate supply left, causing prices to

surge. Central banks hiked interest rates, trying to cool demand,

straight from monetary policy. Developing economies were hit hardest as imported goods and

foreign investment dried up. Developed nations used financial cushions, printing money to

absorb the shocks. This divergence creates a two-speed global economy, widening the wealth

gap for decades.