Beware a global economy with little fires everywhere

Developed nations need to thwart the economic fallout from the Ukraine war from destroying the lives of the world's most vulnerable

Big shocks to the global economy, such as Russia's invasion of Ukraine, understandably capture the most attention. But a new worldwide pattern of little fires everywhere" may be equally consequential for longer-term economic wellbeing. Over time, these small fires can coalesce into one that is just as threatening as the initial large fire that acted as the catalyst.

In addition to causing widespread death and destruction, and displacing millions of people, the Ukraine war continues to stoke strong stagflationary winds throughout the global economy. The resulting damage - whether in the form of higher food and energy prices or new supply-chain disruptions - cannot be easily or rapidly countered by domestic policy adjustments.