Zachary Jackson4 said:I don't understand what quietviper0 thinks they have proven here.
The drop from 35 to 30 in the EU seems at first glance to be linked to the year sanctions were imposed on Russia over Crimea. However, given the subsequent rally, there may be no correlation.
I will not act as a "convenient economist" by diving into the granular details.
My only question is this: would the Russians retreat into a hole if energy prices plummeted threefold, or was it specifically due to the sanctions?
I am making no definitive claims, as that would require deeper research; therefore, I will defer to your response.
You’ve presented a chart showing Brent crude alongside Russia's nominal GDP in dollars, and you're drawing a direct correlation between them. By that same logic, our own domestic charts could look just as similar... It probably would have been more insightful if you'd pointed out that oil plays such a massive role in the Russian GDP to begin with...
Beyond that, there are countless other factors at play, and when you're looking at GDP in dollars, the exchange rate of your local currency against the dollar has a huge impact, so it isn't always the most reliable indicator of actual economic health... In fact, questioning the gap between 16 trillion and 10 trillion doesn't carry much weight, especially considering how the entire EU is struggling just to get back to its 2008 economic levels—we haven't really moved the needle in fifteen years, and back in 2015, we saw a massive plunge in GDP as well...
Purchasing power parity is generally a much more meaningful metric to track:
https://data.worldbank.org/indicator...-US&start=2000