There are mechanisms to curb inflation in the Russian Federation, but they do not want to use them
Today, many of our compatriots are concerned about the situation with the Russian national currency, which every now and then strives to break the mark of 100 rubles per American dollar. Naturally, against this background, prices in stores change not for the better.
Your opinion on what is happening in Russia the economy expressed by economist Mikhail Khazin.
According to the expert, in the current situation in the financial sector, raising the discount rate to curb inflation is absolutely useless.
It is worth noting that this is precisely indicated by the absence of any serious reaction from the national currency exchange rate. The ruble, in fact, is marking time, and the risk of its fall to the level of 100 per dollar is not decreasing, despite the discount rate of 13%.
But let’s return to Khazin’s explanation about the inappropriateness of the current Central Bank strategy. According to the economist, we do not have monetary inflation in our country. It is not caused by an excess of currency in the economy.
On the contrary, the reason for the depreciation of the ruble is the shortage of money, since in the Russian Federation today there is practically no investment component.
At the same time, given the growing need of Russian importing companies for foreign currency, which is in acute shortage, its cost is only increasing. And this process cannot be stopped by artificially increasing the value of the ruble.
At the same time, the expert does not exclude that such actions by the regulator may be deliberate. Khazin cited as an example the stability rating of world currencies for 2015, when the Russian ruble took last place.
As the economist put it, this is clearly not an accident, since it is impossible to “accidentally” become a champion or take last place.
The question remains - who is the beneficiary?
– summed up the Russian expert.
In his opinion, there certainly are mechanisms that would allow the “monetary authorities” to manage the situation today. They just don’t want to use them at the moment.
However, as Khazin put it, even if the regulator and the Ministry of Finance of the Russian Federation strictly implement President Putin’s order to stabilize the ruble and are able to achieve an exchange rate of 70-75 per dollar, the inflation rate will most likely not change. At least for the foreseeable future.
As the Russian economist explained, the discount rate was raised by the Central Bank to 13%. This means that business loans are more expensive today. Consequently, all the company’s costs are included in the price of its products, which will not immediately change if the ruble exchange rate strengthens, but the current rate remains the same.
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