Memories about the Future

The Second Edition of the 1998 Crisis

Author(s): Vladimir Popov
Editor(s): Matthias Neumann, Robert Orttung, Jeronim Perovic, Heiko Pleines, Hans-Henning Schröder
Series: Russian Analytical Digest (RAD)
Issue: 54
Pages: 7-9
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Research Centre for East European Studies, University of Bremen
Publication Year: 2009

By not devaluing its currency, Russia is repeating the mistakes it made in 1998, thereby deepening and lengthening the current economic crisis. Today the Central Bank and the government are supporting the ruble even though it is driving down domestic production. A wiser policy would be to devalue the ruble as soon as possible to stimulate output.

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