War in the Middle East is again producing an oil shock, as was the case in past years. For the chief perpetrator of the new shock – the United States – this will be a multi-front war where the financial impact could hit the country harder than import price shocks.
The US is a debtor nation on a grand scale, running as it does both current account and budget deficits and therefore being highly dependent upon foreign capital inflows. Will the Trump administration’s antics – widely perceived as…

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