How would an energy embargo affect Germany’s economy?
Researchers draw some lessons from past episodes
RUSSIA’S DECISION to halt the supply of gas to Bulgaria and Poland has added fuel to an already heated debate in Germany, which is heavily reliant on the commodity. For weeks the country’s economists and officials have argued over just how much a ban on Russian hydrocarbons would harm the economy. Now it seems imaginable that Russia itself could turn off the taps. What toll would an embargo take? A wide body of research, which examines a range of past disruptions, sheds light on the question.
This article appeared in the Finance & economics section of the print edition under the headline “Cascade effects”
Finance & economics April 30th 2022
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