Markets and Conflict: Economics of War and Peace (Perspectives in Behavioral Economics and the Economics of Behavior)

Markets and Conflict: Economics of War and Peace explores the causes, impacts, and linkages of contemporary geopolitics, markets, and conflict along with their economic impacts on all stakeholders. It compiles the most current research and insights about market behaviours during conflicts of different types and severity, detailing how markets actually respond and what readers can do to implement a proactive early-response strategy. Today’s international “order” is one characterized by instability and pervasive danger. Russia’s invasion of Ukraine, escalating tension over the status of Taiwan, frozen and active civil wars across dozens of countries, and continued turmoil in the Middle East, including in Syria, Yemen, and Israel, are only some examples of ongoing or potential conflicts. Major and minor armed conflicts flare up or threaten to do so on a continual basis. Market responses to this instability are often irrational and shortsighted. Fear induces volatility in markets, based on panicked efforts to protect individual interests. Markets and Conflict: Economics of War and Peace presents a comprehensive understanding of conflict and market dynamics to enable market participants to make informed judgments. Additionally, it provides lessons related to macro-level dynamics useful to governments and policy analysts. Compiles and analyzes extant literature on how confl ict and markets interact Offers strategies to ease or prevent the effects of confl ict Utilizes a well-structured, clearly written, comprehensive, multidisciplinary approach Presents self-contained chapters each with conceptual overviews and defi nitions Front Cover Markets and Conflict: Economics of War and Peace Copyright Contents Acknowledgments Chapter 1: Introduction References Chapter 2: Equity markets Introduction Equity markets and conflict World Wars I and II Iraq wars Terrorism Overall trends Strategies to prepare for conflict Conclusion References Chapter 3: Energy markets Introduction Basics of the oil and gas markets Production and distribution logistics and international relations Criminal violence, terrorism, and civil wars International conflict and oil Conflict, the price of oil, and the search for energy independence Petrostates Conclusions References Chapter 4: Agricultural markets Introduction Agricultural markets Agriculture and conflict The ancient world American civil war World War II Other conflicts Agriculture postconflict Conclusions References Chapter 5: Industrial markets Wars and production Increased demand for military and nonmilitary items Shift in government spending priorities Supply chain disruptions Conflict and capital flight Capital input and economic development Labor inputs Innovation and war Industry after war Civil wars and industrial markets World War II as a case study Russian invasion of Ukraine as a case study Conclusion References Chapter 6: Trade and currency Currency value and modern markets Modern trade Barriers to trade Trade, economic interdependence, peace, and war War and trade Sanctions and war Trade wars Currency wars Currency during war Civil wars and trade Civil wars and currency Case study: Trade and currency wars of the 1930s Case study: Russia's invasion of Ukraine Conclusion References Chapter 7: Military contracting History of mercenaries and military contractors Defining private military actors The modern growth of military contractors Military contractors as a market Military contractors: Flexibility and entrenchment Military industrial complex War and defense companies Military service providers PMSCs, human rights, and regulation Military contractors in the US wars in Iraq and Afghanistan Wagner Group Conclusions References Chapter 8: Natural resources Historical relationship between resources and war Resources and war in the modern era Basics of commodity markets Material prices in war Investment in raw material production and extraction Resources and civil wars Terrorism and natural resources World War II as a case study Russian invasion of Ukraine as a case study Conclusions References Chapter 9: Conclusion Index Back Cover Market Behavior During Conflict explores the causes, impacts and linkages of contemporary geopolitics, markets and conflict, along with their economic impacts on all stakeholders. The book compiles the most current research and insights about market behaviors during conflicts of different types and severity, detailing how markets actually respond and what readers can do to implement a proactive early-response strategy. Whenever a global or regional conflict occurs, markets of every sort react based on fears which are largely unfounded. The book illustrates that preconceived notions can be self-fulfilling prophecies when they occur.