2 ms·
They were Soviet rather than 'Russian-style' and they very much had ways to 'borrow from the future' - externally they were connected to the global economy and
by pvg 4y ago
They were Soviet rather than 'Russian-style' and they very much had ways to 'borrow from the future' - externally they were connected to the global economy and there was an internal system of industrial credit and settlement strictly separated from the cash economy individuals used.
- MilStdJunkie 4y agoOh yeah. The invention of the Eurobond was a turning point not just in economics but for the history of the Soviet Union itself. It made the security state the sole gatekeeper, since you couldn't trust a design bureau to approach a London bank. From what I understand, Gosbank-supervised credit system relied entirely on dynamic metrics from Narkomfin and higher up in the government, which made the pricing of such "debt" completely opaque. Like, deliberately so, unlike our Western variants which are theoretically transparent. I won't editorialize that. I am not a super-expert, but the story of Rowland Barin and the Eurobond - and its effects on Soviet economics - captivated me after the Western financial system effectively collapsed in 2007-2008.