Research on the Influence of Russia-Ukraine War on American Inflation and Strategy Optimization

Abstract

The outbreak of the Russia-Ukraine War must be the most astonishing and significant event in 2022. It is a war caused by geopolitics but damages the global economy drastically. The necessity of studies on the specific influences of the Russia-Ukraine War on certain countries raises, and how to mitigate these influences becomes imperative. The research design is descriptive with secondary data like CPI and PPI. This paper will also complete the case study of how the Russia-Ukraine War led to U.S. inflation with economic models including an open economy market and demand and supply. The result reveals the influence of the war on the rise of prices of U.S. energy, food, and other products. The suggestions are to cease the war, imply contractionary monetary policy, cancel tariffs, increase energy supply, and seek alternatives to fossil fuels. This paper helps explain the impacts of the Russia-Ukraine War on American inflation and the strategies that are implicated carefully to improve citizens’ lives.