The Economic Cost of War: Hundreds of Billions and Counting
By
Justin Wolfers, Jacqueline Cole
Lightly toasted, lightly seasoned, mostly correct.
Summary
The article analyzes the economic costs of the war in Ukraine, focusing on oil price shocks (adding ~$1.50/gallon to gas), evaporated Fed rate cuts, and shelved investment decisions due to rising geopolitical risk. The total economic impact is estimated in the hundreds of billions to trillions of dollars. The piece is framed around a Substack Live discussion about what the war is actually costing the global economy.
Key quotes
· 3 pulledwhat is this war actually costing us?
from the oil price shock that's added roughly $1.50 to every gallon of gas, to Fed rate cuts that have evaporated overnight, to investment decisions being quietly shelved as geopolitical risk soars
the bill ends up in the hundreds of billions of dollars, and possibly the trillions
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