This year, the global economy is in murky waters with rising inflation and a looming recession. The U.S, Europe, and Asia face similar economic woes as house prices soar, daily essentials turn expensive, but wages don’t catch up. In addition, gas prices have hit the roof, and the U.S government is struggling to contain the rising costs. Though gas prices dropped below $4.50 per gallon for the first time in two months, the issue is far from over. The stock and the crypto markets are hitting due to unfavorable developments. Read here to know how conflicts affect the crypto markets in the first place.
The rise in gas prices can be attributed to the Russia and Ukraine war. The conflict crippled the negotiation power as Russia supplies a significant volume of gas to several European countries. Russia is the largest gas exporter in the European Union alone, and the EU consumes 40% of fossil fuels.
How to Revive the Stock & Crypto Markets?
The global economy is under pressure, as the world leaders are addressing everything except the elephant in the room. The elephant in the room is none other than the Russia-Ukraine conflict that caused the price rise in the first place.
The world leaders need to address the root cause first before drafting guidelines on the economy. Leaders have turned a blind eye to Russia and Ukraine, and Vladimir Putin waged war without significant consequences.
President Joe Biden must get to work by creating a treaty that would set commodity prices up to go down. The ongoing conflict must first be resolved to stabilize the current and uncontrollable global macroeconomic pressure. Only then could things iron out by themselves by laying a sustainable plan for the economy’s recovery.
All plans to revive the economy will eventually fail until the conflict is sorted out and ended. Therefore, the only way to bring the economy, stocks, and the crypto markets are to end Russian aggression.