![](https://i.imgur.com/CLvY2jA.png")
02-04-2022, 12:37 PM
https://www.livemint.com/opinion/online-...74486.html
The global economy has suffered two negative supply-side shocks, first from covid and then from Russia’s invasion of Ukraine. War disruptions have come with higher inflation as its short-term effects on supply and commodity prices have combined with the consequences of excessive monetary and fiscal stimulus across advanced economies. Putting aside the war’s profound geopolitical ramifications, the immediate economic impact has come in the form of higher energy, food and industrial metal prices. Together with supply-chain disruptions, this has worsened the stagflationary conditions that emerged during the pandemic.
The global economy has suffered two negative supply-side shocks, first from covid and then from Russia’s invasion of Ukraine. War disruptions have come with higher inflation as its short-term effects on supply and commodity prices have combined with the consequences of excessive monetary and fiscal stimulus across advanced economies. Putting aside the war’s profound geopolitical ramifications, the immediate economic impact has come in the form of higher energy, food and industrial metal prices. Together with supply-chain disruptions, this has worsened the stagflationary conditions that emerged during the pandemic.
