Ukraine war has already changed the world economy

Russia’s invasion of Ukraine has already transformed the global economy—but not in the ways one might expect, FP’s Adam Tooze writes.

“One lasting story of this war could be the way that Europe uses it to launch its next stage of integration.” “…this war might mark a turning point in the history of globalization, on a par with 1914. Conflict and lack of trust… will undercut investment and trade and unleash a general retreat from international interdependence. Others see Russia’s efforts to open channels for trade with India and China as harbingers of a new multipolar order.”

“…it’s important to note the some of the deepest and potentially most consequential economic effects are being felt much farther from the theater of battle…the surge in inflation, and the tightening of monetary policy, the war adds to an already inhospitable environment for fragile, heavily indebted low-income and emerging market economies.

Read the original article here.