Russia-Ukraine Crisis and Deglobalization
The impact on Indonesia can be seen in the difference in the prices of nonsubsidized fuel and liquefied petroleum gas (LPG), which have encouraged substitution of subsidized products.
In this image taken from video and released by Russian Defense Ministry Press Service, A Russian rocket launcher fires during military drills near Orenburg in the Urals, Russia, Thursday, Dec. 16, 2021. Amid a buildup of Russian troops near Ukraine, Moscow has denied planning an attack on Ukraine but urged the U.S. and its allies to provide a binding pledge that NATO won't expand to Ukraine and won't deploy military assets there _ a demand rejected by the West.
Within a week, Russia's invasion of Ukraine has changed the global economy as we knew it. Globalization allowed countries in the world to share labor to reduce global production costs.
Western allies have imposed economic sanctions as a strategy to isolate Russia from the global economy. In mathematics is the term stable local equilibrium, but it will not necessarily survive dynamically if there is a large enough shock to the system (Chiang, 2004).