What is the collateral damage?
A big problem for Biden (and soon for his European counterparts as well) is the economic damage that would come after this war. There are already inflation expectations to shift upward faster, as a result of excessive fiscal and monetary stimulus.
Plus, history is clear when it comes to economy and wars: it’s even more difficult than with pandemics. Even if the Iranian oil returns to the world market, we won’t be able to avoid the shock of Western sanctions on Russia. What’s more, these price spikes aren’t only affected by oil and gas, but also by other commodities.
If you enjoyed reading this article, we also recommend reading: Vladimir Putin – The Polarizing Bear of Russia?
