this paper, I want you to think about and address the Macroeconomic questions surrounding the situation in Ukraine.  One article that I came across that triggered this thought for the topic is http://www.cnn.com/2014/03/05/world/europe/ukraine-russia-tensions/index.html?hpt=hp_t1, but I am sure there are many others.

In your paper, I want you to discuss the short- and long-term effects of the situation in Ukrane and specifically the Russian “invasion” of the Crimean peninsula.  Things to consider:

1.  What effects would the trade sanctions have on Russia’s GDP?  What other effects might there be?  Why might these sanctions affect Russia’s behavior?

2.  What effects would a war (or other destruction) have on Ukraine’s GDP?

3.  How would a war that destroys parts of Ukraine’s infrastructure affect their long-run growth?

4.  How would a feeling of general instability affect Ukraine’s long-run economic growth?

5.  There may be other economic effects of the situation in Ukraine–perhaps in the oil markets, since Ukraine is a producer of petroleum.  You may address these other issues if you wish.