Gas and Oil Price Shocks in Europe – Due to the War in Ukraine, or Political Hesitation?

General Information on the Presentation

The event was part of the series "Economic Consequences of the Russian Invasion of Ukraine".

The war in Ukraine is a geopolitical watershed. The world could disintegrate into an American-dominated bloc and a Chinese-dominated bloc. The war fundamentally changes the outlook for security and prosperity. There is a threat of stagflation, a combination of weak growth and high inflation. How should policymakers respond? Monetary policy faces a dilemma: Raising interest rates can curb inflation but would further dampen growth. Fiscal policy can only redistribute the burden of rising prices; it cannot eliminate it. In terms of energy policy, diversification of energy imports leads to greater security of supply, but also higher costs. In addition, military spending is rising.

• What consequences does the war have for Germany as a location for energy-intensive industries?
• In which policy fields and in which measures should the scarce resources flow?
• And what role does the EU play?