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Russia's transition: muddling-through

Author: Delpla, J. ; Wyplosz, CharlesINSEAD Area: Economics and Political Science Series: Working Paper ; 94/60/EPS Publisher: Fontainebleau : INSEAD, 1994.Language: EnglishDescription: 25 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: This paper reviews the macroeconomic situation in Russia over 1993-1994. It notes the striking progress achieved in the fight against inflation and tracks down the contributions of monetary and fiscal policies. However, the paper notes that the situation is unsustainable, with tax revenues rapidly falling and real interest rates excessively high. When asking whether a relapse into near hyperinflation is likely, the paper concludes that more likely are further ups and downs of moderate amplitude, as Russia muddles through towards normaly
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This paper reviews the macroeconomic situation in Russia over 1993-1994. It notes the striking progress achieved in the fight against inflation and tracks down the contributions of monetary and fiscal policies. However, the paper notes that the situation is unsustainable, with tax revenues rapidly falling and real interest rates excessively high. When asking whether a relapse into near hyperinflation is likely, the paper concludes that more likely are further ups and downs of moderate amplitude, as Russia muddles through towards normaly

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