The Real World Economics of the Energy Crisis

The 2022 energy crisis taught me more about economics than any textbook ever could.

When Russia invaded Ukraine, my family's heating bill tripled overnight, creating a massive

supply shock. Suddenly, cost-push inflation wasn't just a graph. It was Mum

choosing between heating and groceries. Global gas prices skyrocketed from 50p to over 4

pounds. This was pure supply constraint. Our trade deficit widened and the

pound weakened. My teacher called it a terms of trade shock. Brexit and the

Ukraine crisis created a perfect storm, pushing interest rates up to five point two five

percent. These weren't abstract theories anymore. They were real decisions affecting real