The economic consequences of the new Cold War

Ukraine’s Crimean peninsula has effectively been annexed by Russia. There is unrest along Ukraine’s eastern borders, and the Russians may take control of that region as well. Referendums in that area, even though dismissed for their lack of rigour and flawed voting procedures, have stoked separatist sentiment even more.

On the other side, American troop levels have been increased in the Baltic States. And both the US and Europe have imposed sanctions on Russia, targeted especially at its long-serving president, Vladimir Putin.

It may be an exaggeration to describe all that as a new Cold War, and certainly the tension [...]

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