The Power of Substitution and its Impact on Macroeconomic Effects

After the Russian invasion of Ukraine, there was a heated debate in Germany about whether to embargo the import of Russian natural gas as a sanction against Russia’s aggression. Before Germany could act, Russian began cutting the flow of gas to Germany, eventually halting it entirely. On this episode of the Brookings Podcast on Economic Activity, Benjamin Moll and Georg Zachmann talk with Economic Studies Director Ben Harris about how Germany navigated this tense situation, as well as their prior work that helped spur the "Great German Gas Debate."

Show notes and transcript

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