Russian financial crisis

Since the collapse of the Soviet Union, Russia has experienced two major economic crises. These were the 1998 Russian financial crisis and the 2008 Russian financial crisis, which was part of the 2008 global economic crisis. In this article I will explore the performance of the Russian economy after the two crises. In addition, articles will evaluate the current performance of the Russian economy. Following the collapse of the Soviet economic crisis in the Soviet Union in 1998, Russia implemented major economic reforms and changed the central government of economic transformation to a capitalist market economy.

Russian financial crisis (also called ruble crisis or Russian cold) attacked Russia on August 17, 1998. The Russian government and the central bank of Russia were devalued and assumed debt. This crisis has had a serious impact on the economies of many neighboring countries. At the same time, James Cook, senior vice president of US Russian investment funds said the crisis had a positive impact on the diversification of Russian banking assets. Reduced productivity, a high fixed exchange rate between the ruble and foreign currency to avoid public confusion, and a long-term fiscal deficit are the causes of the crisis. The economic cost of the first war in Chechnya was estimated at 5.5 billion dollars (not including the reconstruction of the destroyed Chechnya economy), which also led to a crisis. In the first half of 1997, there was a sign of improvement in the Russian economy. But shortly after this, the problem began to increase

The financial crisis in Russia affected other world financial markets. The US financial markets fell and the Dow Jones industrial stock average fell near 3% in three business days. This is due to Russia's financial crisis. This crisis is compared to the Russian financial crisis that affected the world market in 1998. Olivier Blanchard, economist at the International Monetary Fund pointed out that the uncertainty caused by the Russian economic crisis could lead to an increase in global risk avoidance similar to the 2007-08 financial crisis. However, international sanctions against Russia in 2014 will reduce the economic ties between Russia and the wider financial world, thereby reducing the risk that the Russian economic downturn will affect the world economy. Since 1998, Russia and many other countries have adopted floating exchange rates, which will also help prevent the Russian financial crisis from affecting other parts of the world.