S1E6: Sanjai Bhagat – The Economic Impact of the War in Ukraine

Professor Sanjai Bhagat is a recognized expert in finance who has worked with Fortune 500 companies and with the U.S. Securities Exchange Commission and expertly explains financial theories to students at the Leeds School of Business.In this episode, Sanjai talks to us about the rippling economic effects of the war in Ukraine. EPISODE QUOTES:On hard choices over energy[00:17:27] So we have a choice here to make. Either we can decide to focus more on cutting back on carbon intensive electricity sources – that will be cutting back on natural gas and coal – but then that would have to be offset by nuclear because even the best scenario, going out for the next 30, 40, 50 years, does not suggest that wind and solar can provide us with the majority of our energies.On how regulators can lower oil prices[00:12:21] The EPA regulators and other energy industry regulators, they can actually impact the oil prices today by simply declaring in a credible manner that they are not going to ramp up regulations. In fact, they're going to start ramping down their regulations and that's going to lower the price today, even though it'd be several years from now, before the, you know, those oysters start coming out from the ground. So that's something that I think is not widely appreciated or even understood, but you know, that's the way that the markets work.The link between the price of oil and Russia’s invasion[00:04:54 ] When the brand crude oil prices are at a relative high, that fills up the Russian treasuries coffers, and that makes Mr. Putin feel economically strong. And when he feel economically strong, then he goes out on his military adventure.SHOW LINKS:Guest’s Profile:Profile at Leeds School of BusinessSanjai Bhagat on LinkedIn