Reframing External Shocks as Opportunities for Economic Management

There is a distinction between viewing external shocks as crises to be managed or as opportunities to reshape the state and move in new directions. The idea of using sanctions to pressure Putin into submission assumed that Russia would continue running its economy as before, which had been austere with government surpluses. The ongoing war might lead to a shift towards a war Keynesianism approach, allowing for a more expansive economic management. This shift implies that the economy may not be the driving force behind Russia seeking peace as initially thought under the sanctions regime.