How to secure external sustainability of the russian economy
- 20 September 2013
- journal article
- Published by NP Voprosy Ekonomiki in Voprosy Ekonomiki
- No. 9,p. 4-39
- https://doi.org/10.32609/0042-8736-2013-9-4-39
Abstract
The paper looks into emergence of external imbalances and economy’s adjustment to them. We find that Russian economy adjusts mainly via increase or decrease of domestic demand (resulting in substantial risks and losses of production), while capacity of adjustment via exchange rate channel is very limited. Another conclusion is that long-term growth rate compatible with external sustainability amounts to just 2,2%. Any attempts to boost growth above this level, not supported with profound structural reforms, would entail regular painful crises, reverting economy to the two-percentage growth trajectory.Keywords
This publication has 2 references indexed in Scilit:
- Pilot External Sector ReportPolicy Papers, 2012
- External adjustmentReview of World Economics, 2004