EU-China-Russia: Macroeconomic Aspects and Multinational Enterprises

Key macroeconomic aspects of the Russo-Ukrainian war are presented, and the special role of multinational corporations is also reflected upon. Macro perspectives include energy price shocks and elevated inflation rates in most industrialized countries—with inflationary pressure pushing already rising inflation rates in 2021. The West is facing similar problems as in the 1970s in some respects, but with changed framework conditions (concerning the role of China and the digital economy, among others). The Phillips curve is back from an economic point of view, but the trade-off between full employment and price level stability addressed here appears modified compared to earlier; among other things, because of the home-office phenomenon, which has intensified during the corona pandemic. Key perspectives for Germany and the Eurozone are highlighted, and aspects of the US economy and China’s economic development and interdependence are also addressed. The important role of multinational companies in Russia and OECD countries is highlighted, with prospects for maintaining international investment in Russia assessed as low. Politico-economic echo effects of a negative nature could arise from the point of view of multinationals from OECD countries vis-à-vis China, whose strong political support for Russia appears problematic from a Western perspective. A rational way of dealing with the gas price shocks and the associated electricity price shock in OECD countries is proposed.