Russia's War Hits Its Economy on Many Fronts

Download or read book Russia's War Hits Its Economy on Many Fronts written by Mika Kortelainen and published by . This book was released on 2022 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Russia's invasion of Ukraine on February 24 has forced us to confront the catastrophic human implications of war, especially when any path to peace is still unclear. The situation also requires consideration of war's economic effects. In the following, we assess possible economic impacts of the Ukraine invasion on Russia and the euro area. In assessing the economic impact of Russia's war, we utilize the global integrated monetary and fiscal (GIMF) model based on a general equilibrium framework (Kumhof et al., 2010). Our version of the model distinguishes three economic areas (Russia, the euro area, and the rest of the world), and includes oil production and oil prices as they are important in assessing the Russian economy.