Is war actually fueling the Russian economy instead of destroying it?

Despite four years of conflict, international sanctions, and massive debt, the Russian economy continues to function. This episode explores the concept of death economics, or smertonomika, to explain why the ongoing war in Ukraine has paradoxically acted as a stimulus for the country's financial activity.

The term smertonomika, or death economics, describes a scenario where the act of waging war serves as a primary driver for economic output. Rather than the economy supporting the military effort, the military effort itself is propping up the broader economic system.

This analysis identifies six distinct factors that have allowed the Russian economy to persist despite the immense financial strain of burning billions in resources. By examining these mechanisms, the episode clarifies how a nation under heavy sanctions can maintain industrial and financial momentum during a prolonged conflict.

Source: Why hasn't the Russian economy collapsed? | The Indicator