Macroeconomic theory suggests that without any outside intervention, the macroeconomy will self-adjust and return to its long-run state after short-term shocks. The decision for policymakers thus boils down to a cost-benefit analysis taking into account factors like intertemporality and risk tolerance — they can either wait and allow the economy to adjust organically, or sink resources into actively trying to stabilize the economy, taking on the risk of further destabilizing it.
2021 has been a very positive year for economic growth worldwide, nevertheless, rumors of a looming recession are becoming more of a reality. Europe’s increase gas prices, China’s Omicron outbreak, and the US’s rapid inflation are blaring threat to an economic downfall that could have been avoided.
If far-right candidate Marine le Pen becomes the next French president, what would her ambitions mean for the European economy—and for her country’s geopolitical ambitions?
The Ukraine conflict represents an existential threat to global food security as some of the world’s largest food exporters: Russia and Ukraine, become embroiled in war. Economics Columnist Sean O’Connell explores what’s happening to world food supplies, and the geopolitical and humanitarian outcomes that come from empty stomachs.
The Russian economy has taken a massive hit as sanctions bite. The effects – both ongoing and soon-to-be – will create chaos within the previously strong-standing society. The country, now being cut off by neighbors and pressured into inescapable stalemates, has introduced new policies detrimental to the Russian people and business. Read on to learn more about the effects of sanctions and to review excerpts of an exclusive BRB interview with a Russian business owner.