Economic Shock

Categories: Econ, Trading

A war starts (or another catastrophic event occurs) in another country nearby and your local economy goes from growing 8% per year...to declining 5%. Because of your not-so-friendly neighbor’s political instability, a “shockwave” is sent through your country’s economy, and the supply and demand of the various markets goes topsy-turvy. People stop buying your products, global governments no longer trust the value of your currency, and your local population is getting restless, threatening civil war.

What’s worse: your country can’t necessarily do anything about it. That's economic shock.

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