Are Markets Right About Ukraine Inaction?

The big news today on the Russian seizure of the Crimea from the Ukraine was that Europeans are feeling a lot calmer about the prospect of conflict. To the extent that the uptick in the markets this reflected relief that Russian President Vladimir Putin had not further escalated the conflict with new military actions aimed at seizing more territory that is a sentiment that is universally shared. But as the days pass since Russian troops took control of the Crimea, those jumping to the conclusion that the West will soon be going back to business as usual with Russia may have a firmer grip on reality than those who assume that all of the exemplary rhetoric coming from both the United States and its European allies about their concern may not be followed up by the sort of economic sanctions that would, as President Obama said, make Putin pay a price for his aggression.

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Are Markets Right About Ukraine Inaction?

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