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PGIM

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Russia’s Invasion: Eurozone Recovery Delayed but not Derailed

Russia’s Invasion-Eurozone Recovery Delayed but not Derailed

The economic impact of Russia’s invasion constitutes a clear negative supply shock for the euro area that creates a dilemma for policymakers. On the one hand, higher energy prices will hit economic activity, reduce confidence and damage trade and financial links. On the other hand, the conflict will raise inflation ...

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