How short will the memory of Capital be?

Much is being written about the impact that the pandemic is set to have on globalization and about international capital relocation. It refers to a return to regionalization, to the detriment of globalization, a process whereby people who put their money in China first, and in other corners of the developing world, will bring production closer to home. The problem is that we, as humans, suffer from a major flaw. Most often than not, we imagine the future replicates the recent past. This is why there are extremely few analysts who manage to accurately foresee a recession after years of solid economic growth. This is also why companies will predict endless rises in revenue after a profitable spell. I am afraid that when pondering the implications of the pandemic we are facing the same pitfall. We talk about changes set to occur in the medium and long term as if we are in for an endless succession

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