Abstract

http://ssrn.com/abstract=241686
 
 

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Give Macroeconomic Stability and Growth in Russia a Chance


Brian Pinto


World Bank - Moscow Office

Vladimir Drebentsov


World Bank - Moscow Office

Alexander Morozov


affiliation not provided to SSRN


Economics of Transition, Vol. 8, Issue 2, July 2000

Abstract:     
This paper identifies and investigates conceptual and empirical links among Russia's disappointing growth performance of the mid-1990s, its costly and eventually unsuccessful stabilization, the macroeconomic meltdown of 1998 and the spectacular rise of non-payments. Non-payments developed into a system that flourished in an atmosphere of fundamental inconsistency between a macroeconomic policy geared at sharp disinflation and a microeconomic policy of bailing-out enterprises through soft budget constraints. It embodies a large volume of untargeted, implicit subsidies in the order of 7-10 per cent of GDP, which has stifled growth, contributed to the 1998 meltdown through its impact on public debt and made at best a questionable contribution to equity. The overwhelming priority at this point is to dismantle this system, thereby promoting enterprise restructuring and growth, (by hardening budget constraints), and medium-term macroeconomic stability (by reducing the size of the subsidies).

Accepted Paper Series


Not Available For Download

Date posted: December 7, 2000  

Suggested Citation

Pinto, Brian and Drebentsov, Vladimir and Morozov, Alexander, Give Macroeconomic Stability and Growth in Russia a Chance. Economics of Transition, Vol. 8, Issue 2, July 2000. Available at SSRN: http://ssrn.com/abstract=241686

Contact Information

Brian Pinto (Contact Author)
World Bank - Moscow Office ( email )
Moscow
Russia
202-473-7340 (Phone)
Vladimir Drebentsov
World Bank - Moscow Office ( email )
Economics Unit
Moscow
Russia
Alexander Morozov
affiliation not provided to SSRN
No Address Available
Feedback to SSRN


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