How Sanctions on Russia Are Affecting the Global Economy | #cybersecurity | #cyberattack | #education | #technology | #infosec

[ad_1]

Gasoline prices are roughly a dollar higher than a year ago, with a national average of $3.61 a gallon, according to AAA.

Rising energy prices are tough on consumers, although good for producers — and the U.S. economy has both.

Other oil-producing nations will also see a rise in revenues. And for Iran, which has been shut out of the global economy for years, the demand for oil from other sources could help smooth negotiations to lift sanctions.

Over the longer term, the current conflict is likely to have effects on several countries’ future budget decisions. Germany’s chancellor, Olaf Scholz, announced that he would increase military spending to 2 percent of its economic output.

“Defense spending has fallen consistently in the post-WWII world,” Jim Reid, managing director of Deutsche Bank, wrote in a note on Monday. Now, with this shift in “the geopolitical tectonic plates,” he said, priorities are changing, and “those levels are likely to rise.”

In Russia, the central bank and government took a series of actions, including doubling a key interest rates to 20 percent to increase the ruble’s appeal, barring people from transferring money to overseas accounts, and closing the stock market to contain the damage and tamp down panic.

“What’s happening right now is we’re looking at the dismemberment of one of the largest economies on the planet,” said Carl Weinberg, chief economist at High Frequency Economics. “And from what I know about tactics, this is a dangerous tactic.”

Peter S. Goodman and Jeanna Smialek contributed reporting.

[ad_2]

Source link