Cutting Russia out of the global economy means higher prices, a slower recovery, and a whole new global power structure: ‘We don’t really have a playbook for how this might work’

Cutting Russia out of the global economy means higher prices, a slower recovery, and a whole new global power structure: ‘We don’t really have a playbook for how this might work’

An economic cold war has emerged. It's bringing higher inflation and a slowdown in recovery from pandemic setbacks. It could also usher in a new global power structure. Russia has now been the world's most-sanctioned country for about a month. President Vladimir Putin's invasion of Ukraine prompted the US, UK, and European Union to retaliate with . There's no clear end in sight for the crippling sanctions imposed, and the impact has already left the country's economy reeling. The ruble has against the dollar. JPMorgan data shows the worst in the country since its 1998 financial crisis. Yet prolonged sanctions are also likely to spill into other countries in two major ways: higher prices and slower pandemic recoveries worldwide. The world might be past the worst of the Omicron wave, but Russia's invasion and the global financial retaliation are putting a new — and possibly more powerful — drag on its rebound. "The bottom line is that so long as war smolders in eastern Europe it will cloud the economic picture for the entire globe," Dana Peterson, chief economist at The Conference Board, said in a published Thursday. The crux of the new economic risk starts with common goods like