2020-02-19       国际金融协会       2020-02-19 20:00:43

Economic sanctions are a critical element of the foreign policy toolkit of both national governments and international bodies. Their value lies in the fact that they are perceived to be a lower-cost and lower-risk way to change another country’s behavior compared to, alternatively, some form of military action. However, sanctions are a form of government market intervention and can have significant unintended and uncertain consequences—particularly if they are placed on an economy highly integrated into the global economy and the international financial system. In this respect, the measures taken by the United States and its allies against Russia beginning in 2014 represented a paradigm shift. They proved to be effective in limiting the flow of foreign funding into the country, forcing substantial fiscal adjustment and the deleveraging of corporates. Partially as a result of sanctions, GDP growth has remained underwhelming for many years.