We’re now around day fifty of Russia’s invasion of Ukraine, and four European presidents—Poland, Lithuania, Latvia, and Estonia—visited Kyiv to show their support yesterday. (Some photos of Ukraine here). Ukrainian forces also detained one of Putin’s oligarch allies, which has led to a new round of threats from Russia. The other thing that will make Russia angry? The fact that the Ukrainians sank Russia’s flagship for their Black Sea fleet—the same ship that fired upon the border guards at Snake Island. It’s almost poetic justice.
The Moskva is sending a distress call. She's sinking.
Fortuitously, this attack on the flagship of the Black Sea Fleet came on the day Ukraine issued a postage stamp commemorating the heroes of Snake Island.
"Russian warship … go f**k yourself!" pic.twitter.com/gy7kYWMbCo
— Michael MacKay (@mhmck) April 13, 2022
Pro-Russian Telegram channels are reporting that Moskva was hit by Ukrainian missiles — dropping the earlier pretense that was just some random fire — and sank.
The account cites the Russian Ministry, and says the ship's crew was evacuated. pic.twitter.com/diKQyV8lSt
— Justin Ling (Has Left) (@Justin_Ling) April 14, 2022
https://twitter.com/dgardner/status/1514397710509559814
Meanwhile, we are getting into a frustrating debate about whether or not to call what’s happening in Ukraine a genocide, and what makes it frustrating is the fact that there are international obligations to do something about it if that’s indeed the case. There is no argument that there are crimes against humanity happening, and those are very, very serious. But “genocide” is a specific legal term with specific intent, and for President Biden to throw the word around and saying that lawyers can sort out the details later isn’t helping, when the term obligates the US to do something about it (which they have danced around in the past because they don’t want to be obligated). And then Justin Trudeau chines in and says it’s “absolutely right” to use the term, which would then obligate Canada to do something about it as well. But we need to stop using the most serious language for things for shock value, because words have meanings, and in this case, obligations as well.
https://twitter.com/dgardner/status/1513890485970116614
https://twitter.com/dgardner/status/1513902439556169733
Closer to home, the Bank of Canada raised its key interest rates by fifty basis points, and has hinted that more rate hikes are on the way, as they have to not only combat inflation with the only tool they have, but they have to fight the perception that they aren’t doing enough to cool inflation (and that latter part is the bigger part of the problem). I’ll be writing more about what’s in the Monetary Policy Report in the coming days, but in the meantime, here are some smart economists giving some reaction.
https://twitter.com/LindsayTedds/status/1514249461857366021
If the BoC had stayed on the sidelines, where would the feds have gone for some 300 b$ of financing in the space of a few weeks in the spring of 2020?
— Stephen Gordon (@stephenfgordon) April 14, 2022
The possibility – okay – the almost certainty – of higher inflation down thoe road, *after* the economy had recovered from the crisis was the lowest-cost option available at the time.
It was the right call.
— Stephen Gordon (@stephenfgordon) April 14, 2022
So the challenge is to come up with a counterfactual in which covid happens, the Bank of Canada does not buy all those bonds, and in which we are better off than we are now.
— Stephen Gordon (@stephenfgordon) April 14, 2022