Suchergebnisse

In this article the authors question the effectiveness of Russia's government policy aimed at transition from demand economy to economy of supply. The authors argue that Russian financial policymakers incorrectly treat cyclical budget deficit as structural. Such approach creates an additional barrier to an aggregate demand growth in Russia's economy, which still remains in recession. Revival of financial policymakers' trend to excessive accumulation in the National Welfare Fund, post-election cuts in budget social spending and infrastructure investment together with extremely high interest rates pose a considerable threat to the national security. Revealing the effect of restrictive fiscal and monetary policies on deepening the recession, the authors identify the growth dilemma for Russia's economy — either an inevitable halt or a radical shift to a new quality.