Energy prices, economic war and maintaining domestic support.

The IMF is broadly right on the economics of European energy policy. It is wrong on the political economy.

The Western powers are engaged in an economic war with Russia. So far, they are winning¹. Russia’s economy, as catalogued by a recent study, is suffering serious pain. Reuters are reporting that the country has been reduced to stripping jetliners for parts as sanctions bite.

But the economic battle is not yet won and nor is Russia the only economy sufferi…