Economist Eswar Prasad’s new book, “The Doom Loop: Why the World Economic Order Is Spiraling into Disorder,” argues that the mechanisms intended to stabilize the global economy are, in fact, accelerating its destabilization. The book, released February 3, 2026, details a confluence of economic, political, and geopolitical forces creating a destructive feedback loop.
Prasad contends that globalization, rather than fostering shared prosperity, has exacerbated economic inequality and fueled political backlash, leading to escalating trade wars. This assessment aligns with a growing concern that the post-World War II international order is fraying, as highlighted in a recent NPR broadcast discussing the book’s central thesis.
The book identifies a key problem: foundational institutions like the International Monetary Fund and the World Trade Organization have failed to adapt to 21st-century realities. According to endorsements featured on the book’s website, former Treasury Secretary Lawrence H. Summers describes “The Doom Loop” as offering “a deeply insightful account of how economics, geopolitics and technological change are interacting to amplify disorder across the globe.”
The rise of “middle power” countries – India, Brazil, and Indonesia – initially suggested a stable multipolar future, Prasad writes. However, these nations are now increasingly pressured to align with either the United States or China in a burgeoning struggle for global dominance. This dynamic, he argues, contributes to the escalating instability.
Fiona Hill, a former National Security Council expert, describes the book as delving into the “root causes of a perilous period for the global economy,” explaining how financial and debt crises, domestic political upheaval, and geopolitical shifts are interconnected. Raghuram G. Rajan, another economist, notes that Prasad “diagnoses the forces driving the fragmentation of the global economy.”
The book’s central argument, as outlined on the author’s website, is that a destructive feedback loop exists between economics, domestic politics, and geopolitics. This loop, Prasad argues, is not a temporary disruption but a fundamental shift in the global order. The Brookings Institution also published a book with the same title, further indicating the widespread concern over global economic instability.
Janet L. Yellen, the current Treasury Secretary, has endorsed the book, stating it offers “a deeply insightful account of how economics, geopolitics and technological change are interacting to amplify disorder across the globe.”
As of February 13, 2026, no official response has been issued by either the International Monetary Fund or the World Trade Organization regarding the specific criticisms leveled in “The Doom Loop.” A scheduled panel discussion featuring Eswar Prasad at the Brookings Institution on February 20, 2026, is expected to address the book’s findings and potential policy implications.
