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The Russians curbed inflation at the start of the war quite effectively ... by raising interest rates to 20%.
by throwaway4good 4y ago
The Russians curbed inflation at the start of the war quite effectively ... by raising interest rates to 20%.
- JumpCrisscross 4y ago> by raising interest rates to 20% And confiscating hard currency and implementing capital controls.
- throwaway4good 4y agoI think we (the west) did that ...
- JumpCrisscross 4y ago> we (the west) did that Some countries implemented capital controls in the crisis. Some haircut depositors, which is akin to (but still quite distinct from) seizure. Neither happened in America.
- ClumsyPilot 4y agoRussia has stopped imports of many vital goods and industrial machinery, and the economy will likely seize up at one point after spare parts for machinery, etc. runs out
- tcmart14 4y agoI think it depends. Talking with a friend in St Petersberg, last we talked about it was a few months ago so things can change, they are scrambling to bootstrap companies and industries. If they can successfully do that, it may not seize up. But here is the other side of that equation. Trying to stand up something like shops to machine parts in rapid fashion is going to end up with, yea they have parts, but they are low quality. So it may not completely grind to a halt, but it will still be crippling. Now they could completely fail at bootstrapping those things, which yes, it will definitely grind to a halt. But any day now for the past 60-70 years Cuba was supposed to grind to a halt and well, they are still chugging a long. Maybe with lawn mower engines in their cars, but they still manage to get to point a from point b without walking.
- sfe22 4y agoThe US is bankrupt at 10% interest rate. Russia’s economy was in much better shape than us.
- EVa5I7bHFq9mnYK 4y agoPrices for many items shot up like 50% at the moment the war started. So they "curbed" inflation from 50% to 48%.