Background: Since Russia's invasion started, the US and its allies in Europe have been looking at sanctions to stop Russia. We've had restrictions on major Russian state-owned banks, export controls... you name it.

What happened: Now, the US and its European partners are looking at banning the import of Russian oil. As a result, petrol prices surged 10% in Asia...and the Euro came tumbling down.

What else: Goldman Sachs are predicting oil could reach a whopping US$150 a barrel in the next three months without Russian products. And, experts are saying global markets are at risk of 'stagflation'.

🔔 What's the key learning?

💡 Stagflation happens when economic growth is slowing down and unemployment is rising (= stagnant)... but inflation is also rising (= inflation). Put two and two together...it's stagflation.

💡It's a 'lil bit contradictory. Generally, slow economic growth would lead to an increase in unemployment. But in a high unemployment environment, you wouldn't expect rising prices.

💡It makes sense why it happens: with the cost of oil up, the cost of transportation goes up, which means products on shelves become more expensive. Throw in high unemployment...and ya got stagflation. Sounds kinda like what's happening now.

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