Why did the U.S. and European sanctions against Russia earlier this week trigger a rebound in the ruble and the Moscow stock market?
The Great Debate
from Nicholas Wapshott:
The elaborate gavotte between the American and European economies continues.
While the Federal Reserve has begun to wind down its controversial quantitative easing (QE) program, the European Central Bank (ECB) the federal reserve of the eurozone, has announced it is considering a QE program of its own.
There is a disturbing air of inevitability in Western capitals surrounding Russia’s annexation of Crimea. A growing consensus views this scenario as a rough analogy to Moscow’s recognition of Georgia’s breakaway regions of Abkhazia and South Ossetia after the 2008 war — perhaps more severe, but still manageable.
from Lawrence Summers:
The events in Ukraine have now made effective external support for successful economic and political reform there even more crucial. The world community is rising to the occasion, with concrete indications of aid coming not just from the International Monetary Fund and other international financial institutions but also the United States, the European Union and the G20.
When it comes to the mounting crisis in Ukraine, President Barack Obama is stuck playing an old role. Since World War Two, U.S. presidents have steadfastly held to the same course when it comes to Russia.