The Crisis of the Financial System in Russia. Principal Factors and Economic Policy

Publication date
Sunday, 14.02.1999

S. Sinelnikov S. Arkhipov S. Drobyshevsky S. Batkibekov I. Trunin

Problems of Economic Transition. - Vol. 41, No.10, February 1999

The principal cause of Russia's great vulnerability as the world financial crisis developed was the imbalance in state finances. The process of macroeconomic stabilization—the decline in the rate of inflation, the exchange rate of the ruble, and interest rates—that began in 1995 had been accomplished through the pursuit of a tight monetary policy against a background of high levels of budget deficits, which ranged from 11.8 percent in 1994 to 3.9 percent in the first half of 1998.



This issue is the English version of "Кризис финансовой системы России: основные факторы и экономическая политика" issue published in  "Voprosy economiki" - №11, 1998.

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