In the years since the 2008 global financial crisis, central banks have been the "only game in town," maintaining ultra-low interest rates in the absence of counter-cyclical fiscal policies. But with another global downturn looming, a new approach to macroeconomic management is needed.

SANTA BARBARA – Like storm clouds on the horizon, signs of a global economic slowdown are gathering ominously. In the United States, the sugar high generated by President Donald Trump’s massive 2017 tax cut has peaked and is now rapidly waning, without triggering the promised investment boom. In Europe, the ongoing Brexit farce threatens severe economic disruption, even chaos, if the United Kingdom cannot conclude a deal with the European Union before withdrawing from the bloc at the end of October. And in China, growth is unmistakably slowing.