Tools of Russian Financial Stability
THE 11TH ANNUAL DOCTORAL CONFERENCE OF FACULTY OF FINANCE AND ACCOUNTING, Vol. 1, pp. 17-26, David Procházka, PhD., ed., Oeconomica Publishing House, 2010
10 Pages Posted: 31 May 2010
Date Written: May 28, 2010
During Russia’s transition, debates raged over the formation of a market economy and the role of the state. Behind these debates lay both the control of oligarchs over strategic branches of the economy that export raw materials and the experience of the 1998 crisis that drew attention to the country’s external and internal economic vulnerability. This multi-faceted, long-term vulnerability is also coupled with a demographic crisis as well as a labour market crisis tied to the transition. This study deals with the operation of the Stability Fund, including the effects of raw material prices, the pension system and aspects of the capital markets. The Russian version of the multi-pillar pension system puts the emphasis on financial sustainability, by which only a minimum of financial risk has been taken up by the State, while its monopoly in the management of pension funds has ensured a market for its own debt.
Keywords: imbalances, sovereign fund, Russia, oil
JEL Classification: E44, E62, I38, O16
Suggested Citation: Suggested Citation