The improper financial policies implemented by the Russian government during and previous to the economic crisis of November 1997 causing Russias economy to decline lead to a severe crisis in August of 1998 which my avoided been contained or avoided if the situation would have been handled differently. Since May of 1998, Russia has been caught in the latest, and likely the most serious economic crisis. The crisis came to a head on August 17, 1998, when the government of then-Premier Sergei Kiriyenko abandoned its defense of a strong ruble exchange rate against the dollar by defaulted on government domestic debt forcing its restructuring, and placed a 90-day moratorium on commercial external debt payments. Those actions led to President Yeltsins dismissal of Kiriyenko on August 23, replaced, after a political standoff with the Duma, by a more leftward-leaning government led by 35 year former energy secretary Yevgennij Primakov. The August crisis also lowered Russians standard of living and set back Russias efforts toward establishing a market economy, perhaps for years to come. The direct cause of crisis has been the Russian governments failure to address fiscal imbalances. Less direct but more fundamental causes have been structural problems. The government has an inefficient tax regime that fails to generate sufficient revenues to meet fiscal obligations. More fundamentally, incomplete economic restructuring has left an economy, much of which is run on barter, that masks inefficient and even value-subtracting economic activities, and that makes attaining fiscal balances even more arduous. But Russia has faced difficult setbacks along the way, this current crisis being the most serious. The effects of this crisis and how Russian policymakers manage seems likely to determine the future of Russian economic reform, and, consequently, prospects for long-term Russian economic growth and development. Cris…
Unlike most other websites we deliver what we promise;
- Our Support Staff are online 24/7
- Our Writers are available 24/7
- Most Urgent order is delivered with 6 Hrs
- 100% Original Assignment Plagiarism report can be sent to you upon request.
GET 15 % DISCOUNT TODAY use the discount code PAPER15 at the order form.