INTERVIEW: The economic impact of Russia’s invasion
APPLETON, Wis. (WBAY) - Across the country we are already feeling the economic impact of the situation in Ukraine.
Just one day since the start of the Russian invasion, the Dow took a hit and oil prices are already rising, now at their highest since 2014.
Chris Roth talked with Lawrence University economics professor David Gerard on Action 2 News at 4:30 on what it will mean for us.
“It’s not really going to trickle down, it’s more of a rockets and feathers type thing. When you have these shocks, usually oil prices will spike, gasoline prices will spike up like a rocket, and then they will later come down more like a feather. So I would expect gas prices to be on the rise as early as right now,” Gerard said.
Gerard went on, “There is no question that inflation will be, I mean, this certainly won’t help the situation. The main cause of the inflation right now has to do with monetary policy and some supply constraints, and when you start thinking about what Russia actually does as a producer, it’s like a big gas pump in some ways but also a lot of primary metals and wheat. So when you think about the supply disruptions there, you should expect that this is going to make things go from bad to worse.”
Watch the complete interview above.
Copyright 2022 WBAY. All rights reserved.