Good morning.

Today’s Financial Times neatly captures the escalating economic fallout of the war.

Specifically, Phases I and II (a concentrated energy shock followed by a broader price shock) now risk being joined by Phase III (demand destruction). In turn, this threatens Phase IV, the higher risk of financial instability.

As I argue in my latest column in the same paper, this coincides with a decline in policy responsiveness across many countries.

#economy #markets #middleeastwar