So, it’s official. The global rating agency S&P has determined that the Russian government has defaulted on part of its international debt. In itself, this is not as big a deal as it may sound. Nonetheless, the unusual circumstances have revived concerns about the future of the US dollar as the reserve currency of choice … Continue reading Could Russian sanctions undermine the US dollar?
Tag: Russia
What happens if Russia defaults?
The high probability that the Russian government will stop paying its international debts is well down the list of things to worry about as the tragedy in Ukraine unfolds. But this risk should certainly be somewhere on that list – as the fallout from past defaults has shown. We have been here several times before. … Continue reading What happens if Russia defaults?
Too soon to write off the recovery – or raise taxes
Spare a thought for the staff of the Office for Budget Responsibility (OBR), beavering away on a new set of economic and fiscal forecasts for the Chancellor’s Spring Statement on 23rd March. The fallout from the Russian invasion of Ukraine has made a difficulty task almost impossible. It makes sense to present a range of … Continue reading Too soon to write off the recovery – or raise taxes
When facts change, fiscal policy should change too
Putin’s murderous assault on the people of Ukraine is a threat to peace and security worldwide. But someone also has to worry about the impact on the UK economy. The fallout should prompt a rethink of the response to the cost of living crisis and the tax hikes planned for April. The catastrophe in Ukraine … Continue reading When facts change, fiscal policy should change too
Plain-speaking Economics 