How Markets Change in Times of War

Source: American Consequences
by Kim Iskyan

“In late 1998, the Russian economy was collapsing. And I was spending long hours at my work desk in Moscow — writing recommendation letters for colleagues applying to American business schools. The future prospects in Russia were dim … and Yuri, Andrei, and Natasha were trying to find a way out. The country’s economic output would contract by nearly 28% in dollar terms, the stock market would bottom out after falling 93%, and the bond market would freeze up for years. On top of that, the Russian currency would lose two-thirds of its value in a matter of weeks, and never fully recover. Getting out of Dodge to hibernate in higher education (and pursue a Plan Z) was a lot more attractive than suffering through the underemployment, lost earnings, and soul-deadening malaise of economic contraction.” (05/09/22)