Russian financial crisis - AbsoluteAstronomy.com

The Russian financial crisis (also called "Ruble

Russian ruble

The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...

crisis") hit Russia

Russia

Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

on 17 August 1998. It resulted in the Russian government devaluing the ruble and defaulting on its debt

Sovereign default

A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full. It may be accompanied by a formal declaration of a government not to pay or only partially pay its debts , or the de facto cessation of due payments...

Background and course of events

Declining productivity, an artificially high fixed exchange rate

Fixed exchange rate

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.A fixed exchange rate is usually used to...

between the ruble and foreign currencies to avoid public turmoil, and a chronic fiscal deficit were the background to the meltdown. The economic cost of the first war

First Chechen War

The First Chechen War, also known as the War in Chechnya, was a conflict between the Russian Federation and the Chechen Republic of Ichkeria, fought from December 1994 to August 1996...

in Chechnya

Chechnya

The Chechen Republic , commonly referred to as Chechnya , also spelled Chechnia or Chechenia, sometimes referred to as Ichkeria , is a federal subject of Russia . It is located in the southeastern part of Europe in the Northern Caucasus mountains. The capital of the republic is the city of Grozny...

that is estimated at $5.5 billion (not including the rebuilding of the ruined Chechen economy) was also a cause of the crisis. In the first half of 1997, the Russian economy showed some signs of improvement. However, soon after this, the problems began to gradually intensify. Two external shocks, the Asian financial crisis that had begun in 1997 and the following declines in demand for (and thus price of) crude oil

1998 world oil market chronology

Sources include: Dow Jones , New York Times , Wall Street Journal , and the Washington Post .*January 7: Due to the continuing Asian economic crisis, South Korea's refiners have reportedly cut operations to around 80 percent of capacity...

and nonferrous metals, severely impacted Russian foreign exchange reserves

Foreign exchange reserves

Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...

.

A political crisis came to a head in March when Russian president Boris Yeltsin

Boris Yeltsin

Boris Nikolayevich Yeltsin was the first President of the Russian Federation, serving from 1991 to 1999.Originally a supporter of Mikhail Gorbachev, Yeltsin emerged under the perestroika reforms as one of Gorbachev's most powerful political opponents. On 29 May 1990 he was elected the chairman of...

suddenly dismissed Prime Minister Viktor Chernomyrdin

Viktor Chernomyrdin

Viktor Stepanovich Chernomyrdin was the founder and the first chairman of the Gazprom energy company, the longest serving Prime Minister of Russia and Acting President of Russia for a day in 1996. He was a key figure in Russian politics in the 1990s, and a great contributor to the Russian...

and his entire cabinet on 23 March. Yeltsin named Energy Minister Sergei Kiriyenko

Sergei Kiriyenko

Sergey Vladilenovich Kiriyenko is a Russian politician. He served as the Prime Minister of Russia from 23 March to 23 August 1998 under President Boris Yeltsin...

, aged 35, as acting prime minister. On 29 May, Yeltsin appointed Boris Fyodorov Head of the State Tax Service. The growth of internal loans could only be provided at the expense of the inflow of foreign speculative capital, which was attracted by very high interest rates: In an effort to prop up the currency and stem the flight of capital, in June Kiriyenko hiked GKO

GKO

GKO , OFZ are abbreviations for and , respectively. They are government bonds issued by the state of Russia.GKOs are short-term zero-coupon Russian Government Treasury Bills. OFZs are coupon-bearing Federal Loan Bonds...

interest rates to 150%. The situation was worsened by irregular internal debt payments. Despite government efforts, the debts on wages continued to grow, especially in the remote regions. By the end of 1997, the situation with the tax receipts was very tense, and it had a negative effect on the financing of major budget items (pensions, communal utilities, transportation etc.).

A $22.6 billion International Monetary Fund

International Monetary Fund

The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...

and World Bank

World Bank

The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

financial package was approved on 13 July to support reforms and stabilize the Russian market by swapping out an enormous volume of the quickly maturing GKO

GKO

short-term bills into long-term Eurobond

Eurobond

A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued. It can be categorised according to the currency in which it is issued. London is one of the centers of the Eurobond market, but Eurobonds may be traded throughout the world - for...

s. This had started to be implemented with some success by 24 July, yet the Russian government decided to keep the exchange rate of the ruble within a narrow band, although many economists, including Andrei Illarionov and George Soros

George Soros

George Soros is a Hungarian-American business magnate, investor, philosopher, and philanthropist. He is the chairman of Soros Fund Management. Soros supports progressive-liberal causes...

, urged the government to abandon its support of the ruble. On 12 May 1998, coal miners went on strike over unpaid wages, blocking the Trans-Siberian Railway

Trans-Siberian Railway

The Trans-Siberian Railway is a network of railways connecting Moscow with the Russian Far East and the Sea of Japan. It is the longest railway in the world...

. By 1 August 1998 there were approximately $12.5 billion in unpaid wages owed to Russian workers. On 14 August the exchange rate of the Russian ruble to the US dollar was still 6.29. Despite the bailout, July monthly interest payments on Russia’s debt rose to a figure 40 percent greater than its monthly tax collections. Additionally, on 15 July the State Duma

State Duma

The State Duma , common abbreviation: Госду́ма ) in the Russian Federation is the lower house of the Federal Assembly of Russia , the upper house being the Federation Council of Russia. The Duma headquarters is located in central Moscow, a few steps from Manege Square. Its members are referred to...

dominated by left-wing parties refused to adopt most of government anti-crisis plan so that the government was forced to rely on presidential decrees. On 29 July Yeltsin interrupted his vacation in Valdai Lake

Valdai Lake

Valdai Lake is a lake in the middle of the Valdai Hills in Novgorod Oblast, Russia. The area of the lake is 19.7 km². The average depth of the Valdai Lake is 12 m . The lake freezes up in early December and stays icebound until early May. The town of Valdai is located on the shores of the Valdai...

region and flew to Moscow, prompting fears of a Cabinet reshuffle, but he only replaced Federal Security Service Chief Nikolay Kovalyov with Vladimir Putin

Vladimir Putin

Vladimir Vladimirovich Putin served as the second President of the Russian Federation and is the current Prime Minister of Russia, as well as chairman of United Russia and Chairman of the Council of Ministers of the Union of Russia and Belarus. He became acting President on 31 December 1999, when...

.

At the time, Russia employed a "floating peg" policy toward the ruble, meaning that the Central Bank at any given time committed that the ruble-to-dollar (or RUR/USD) exchange rate would stay within a particular range. If the ruble threatened to devalue outside of that range (or "band"), the Central Bank would intervene by spending foreign reserves to buy rubles. For instance, during approximately the one year prior to the Crisis, the Central Bank committed to maintain a band of 5.3 to 7.1 RUR/USD meaning that it would buy rubles if the market exchange rate threatened to exceed 7.1 rubles per dollar. Similarly, it would sell rubles if the market exchange rate threatened to drop below 5.3.

The inability of the Russian government to implement a coherent set of economic reforms led to a severe erosion in investor confidence and a chain-reaction that can be likened to a run on the Central Bank. Investors fled the market by selling rubles and Russian assets (such as securities), which also put downward pressure on the ruble. This forced the Central Bank to spend its foreign reserves to defend the ruble, which in turn further eroded investor confidence and undermined the ruble. It is estimated that between 1 October 1997 and 17 August 1998, the Central Bank expended approximately $27 billion of its U.S. dollar reserves to maintain the floating peg.

It was later revealed that about $5 billion of the international loans provided by the World Bank

World Bank

The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

and International Monetary Fund

International Monetary Fund

were stolen upon the funds' arrival in Russia on the eve of the meltdown.

On 13 August 1998, the Russian stock, bond, and currency markets collapsed as a result of investor fears that the government would devalue the ruble, default on domestic debt, or both. Annual yields on ruble denominated bonds

Bond (finance)

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

were more than 200 percent. The stock market had to be closed for 35 minutes as prices plummeted. When the market closed, it was down 65 percent with a small number of shares actually traded. From January to August the stock market had lost more than 75 percent of its value, 39 percent in the month of May alone.

Crisis and effects

On 17 August 1998, the Russian government devalued the ruble, defaulted on domestic debt, and declared a
moratorium on payment to foreign creditors. On that day the Russian government and the Central Bank of Russia issued a "Joint Statement" announcing, in substance, that:

the ruble/dollar trading band would expand from 5.3–7.1 RUR/USD to 6.0–9.5 RUR/USD;
Russia's ruble-denominated debt would be restructured in a manner to be announced at a later date; and, to prevent mass Russian bank default,
a temporary 90-day moratorium would be imposed on the payment of some bank obligations, including certain debts and forward currency contracts.

On August 17, 1998 in the Joint Statement of the Government of the Russian Federation and the Central Bank of the Russian Federation (CBR) the government declared that the government securities (GKOs and OFZs) with due dates through December 31, 1999, would be rescheduled into new securities. The terms of GKO/OFZ restructuring were also determined in the following acts:

Decree of the Government of the Russian Federation No 1007 of August 25 1998
Decree of the President of the Russian Federation No 888 of 25 August 1998
Decree No 1787-р of December 12, 1998 on novation of state securities
Federal Law on Top-Priority Measures in the Field of Budget and Tax Policy

GKO bondholders made few attempts to pursue litigation in domestic courts

At the same time, in addition to widening the currency band, the authorities also announced that they intended to allow the RUR/USD rate to move more freely within the wider band.

At the time, the Moscow Interbank Currency Exchange (or "MICEX") set a daily "official" exchange rate through a series of iterative auctions based on written bids submitted by buyers and sellers. When the buy and sell prices matched, this "fixed" or "settled" the official MICEX exchange rate, which would then be published by Reuters. The MICEX rate was (and is) commonly used by banks and currency dealers worldwide as the reference exchange rate for transactions involving the Russian ruble and foreign currencies.

From 17 to 25 August, the ruble steadily depreciated on the MICEX, moving from 6.43 to 7.86 RUR/USD. On 26 August, the Central Bank terminated ruble-dollar trading on the MICEX, and the MICEX did not fix a ruble-dollar rate that day.

On 2 September the Central Bank of the Russian Federation

Central Bank of the Russian Federation

The Bank of Russia or the Central Bank of The Russian Federation is the central bank of The Russian Federation. Its functions are described in the Russian constitution and in the special Federal law...

decided to abandon the "floating peg" policy and float the ruble freely. By 21 September the exchange rate had reached 21 rubles to the US dollar, meaning it had lost two thirds of its value of less than a month earlier.

On 28 September Boris Fyodorov was fired from the position of the Head of the State Tax Service.

The moratorium imposed by the Joint Statement expired on 15 November 1998, and the Russian government and Central Bank did not renew it.

Russian inflation in 1998 reached 84 percent and welfare costs grew considerably. Many banks, including Inkombank, Oneximbank and Tokobank, were closed down as a result of the crisis. The salaries of miners alone were to consume $919 million, more than 1 percent of the federal budget

Budget

A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...

. By August of that year, the government

Government of Russia

The Government of the Russian Federation exercises executive power in the Russian Federation. The members of the government are the prime minister , the deputy prime ministers, and the federal ministers...

had paid $4 billion to settle miners’ strike

Strike action

Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...

s. Prices for almost all Russian food items had gone up by almost 100%, while imports had quadrupled in price. Many citizens were stocking up for bad times and throughout the country shop shelves were being emptied, leaving a shortage of even the most basic items, such as vegetable oil, sugar or washing powder. The crisis has reduced demand for food and lowered food consumption, because substantial depreciation of the ruble significantly raised domestic prices for food stuffs. The crisis also increased social tension. The middle class that was already forming by that time had some hope for stability. The confidence of crisis prevention ceased to exist as millions of people lost their life savings from the bank closures. On 7 October that year, demonstrations were held in many cities: around 100,000 took to the streets in Moscow, In Vladivostok

Vladivostok

The city is located in the southern extremity of Muravyov-Amursky Peninsula, which is about 30 km long and approximately 12 km wide.The highest point is Mount Kholodilnik, the height of which is 257 m...

4,000, in Krasnoyarsk

Krasnoyarsk

Krasnoyarsk is a city and the administrative center of Krasnoyarsk Krai, Russia, located on the Yenisei River. It is the third largest city in Siberia, with the population of 973,891. Krasnoyarsk is an important junction of the Trans-Siberian Railway and one of Russia's largest producers of...

3,000 and in Yekaterinburg

Yekaterinburg

Yekaterinburg is a major city in the central part of Russia, the administrative center of Sverdlovsk Oblast. Situated on the eastern side of the Ural mountain range, it is the main industrial and cultural center of the Urals Federal District with a population of 1,350,136 , making it Russia's...

6,000. Defence Minister Igor Sergeyev

Igor Sergeyev

Igor Dmitriyevich Sergeyev was the Defense Minister of the Russian Federation from 22 May 1997 until 28 March 2001...

cancelled his scheduled visit to Greece in the first week of October, in order to be at hand should matters get out of control. Similarly select military units were placed in a state of readiness. On 20 October, President Boris Yel’tsin also signed a presidential decree barring "mass protests" in Moscow between the hours of 10 pm and 7 a.m.and limiting them to a maximum of five days.

As the crisis deepened, regional governors had been introducing emergency measures:
In Krasnoyarsk Krai

Krasnoyarsk Krai

Krasnoyarsk Krai is a federal subject of Russia . It is the second largest federal subject after the Sakha Republic, and Russia's largest krai, occupying an area of , which is 13% of the country's total territory. The administrative center of the krai is the city of Krasnoyarsk...

in Siberia, governor Aleksandr Lebed, had signed a resolution to hold down prices "using administrative methods", a television report said. The authorities in the far eastern city of Vladivostok had banned deliveries of food to areas beyond the port city, and there had been talks of introducing rationing there. In Russia's Kaliningrad

Kaliningrad Oblast

Kaliningrad Oblast is a federal subject of Russia situated on the Baltic coast. It has a population of The oblast forms the westernmost part of the Russian Federation, but it has no land connection to the rest of Russia. Since its creation it has been an exclave of the Russian SFSR and then the...

enclave on the Baltic, the governor announced a suspension of tax payments to the federal authorities.

The regional budgets also suffered from the 1998 crisis. The spending of the regions declined from 18.2% of the GDP in 1997 to 14.8% of the GDP. Spending on the economy (by 1.5% of the GDP) and social expenditures (by 1.6% of the GDP) were especially heavily reduced. The expenditures continued to decline in the following period. They dropped another 1% of the GDP in 1999 to 13.8% of the GDP, and to 10.8% of the GDP in the first quarter of 2000. One of the main factors in the reduction was the decline in subsidies for housing and municipal services, from 3.5% to 2.7% of the GDP.

Political fallout

The financial collapse resulted in a political crisis as Yeltsin, with his domestic support evaporating, had to contend with an emboldened opposition in the parliament. A week later, on 23 August, Yeltsin fired Kiriyenko and declared his intention of returning Chernomyrdin to office as the country slipped deeper into economic turmoil. Powerful business interests, fearing another round of reforms that might cause leading concerns to fail, welcomed Kiriyenko's fall, as did the Communists

Communist Party of the Russian Federation

The Communist Party of the Russian Federation is a Russian political party. It is the second major political party in the Russian Federation.-History:...

.

Yeltsin, who began to lose his hold on power as his health deteriorated, wanted Chernomyrdin back; in a televised address to the nation, Yeltsin said that “heavyweights” such as Chernomyrdin, who was ousted as prime minister in March 1998 for failing to vigorously promote economic reforms, were needed to stem the nation's financial collapse. Yeltsin also suggested that Chernomyrdin would be named his successor as president when Yeltsin's term expires in 2000. But the legislature refused to give its approval. After the Duma rejected Chernomyrdin's candidacy twice, Yeltsin, his power clearly on the wane, backed down. Instead, he nominated Foreign Minister Yevgeny Primakov

Yevgeny Primakov

Yevgeny Maksimovich Primakov is a Russian politician and diplomat. During his long career, he served as the Russian Foreign Minister, Prime Minister of Russia, Speaker of the Soviet of the Union of the Supreme Soviet of the Soviet Union, and chief of intelligence service...

, who on 11 September was overwhelmingly approved by the Duma.

Primakov's appointment restored political stability, because he was seen as a compromise candidate able to heal the rifts between Russia's quarreling interest groups. There was popular enthusiasm for Primakov as well. Primakov promised to make the payment of wage and pension arrears his government’s first priority, and invited members of the leading parliamentary factions into his Cabinet.

Communists and the Federation of Independent Trade Unions of Russia

Federation of Independent Trade Unions of Russia

The Federation of Independent Trade Unions of Russia is the largest national trade union center in Russia, with a membership estimated between 28 and 31.5 million...

staged a nationwide strike on 7 October and called on President Yeltsin to resign. On 9 October, Russia, which was also suffering from a bad harvest, appealed for international humanitarian aid, including food.

Recovery

Russia bounced back from the August 1998 financial crash with surprising speed. Much of the reason for the recovery is that world oil prices rapidly rose during 1999–2000 (just as falling energy prices on the world market helped to deepen Russia's financial troubles), so that Russia ran a large trade surplus in 1999 and 2000. Another reason is that domestic industries, such as food processing, had benefited from the devaluation, which caused a steep increase in the prices of imported goods. Also, since Russia's economy was operating to such a large extent on barter

Barter

Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is usually bilateral, but may be multilateral, and usually exists parallel to monetary systems in most developed countries, though to a...

and other non-monetary instruments of exchange, the financial collapse had far less of an impact on many producers than it would had the economy been dependent on a banking system. Finally, the economy has been helped by an infusion of cash; as enterprises were able to pay off arrears in back wages and taxes, it in turn allowed consumer demand for the goods and services of Russian industry to rise. For the first time in many years, unemployment in 2000 fell as enterprises added workers. Since the 1998 crisis, the Russian government has managed to keep social and political pressures under control, and this has played a vital role in bringing about the current recovery.

Baltic states

The Russian crisis affected Baltic countries more than was expected. Estonia

Estonia

Estonia , officially the Republic of Estonia , is a state in the Baltic region of Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by Lake Peipsi and the Russian Federation . Across the Baltic Sea lies...

, Latvia and Lithuania

Lithuania

Lithuania , officially the Republic of Lithuania is a country in Northern Europe, the biggest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, whereby to the west lie Sweden and Denmark...

sank into recession. The figures for 1999 showed a heavy decline in Baltic's exports to Russia and a significant decline in the growth

Economic growth

In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...

rates of these economies. Food and beverage as well as processing industries as a whole have suffered the most.

Belarus

Overall, economic activity slowed down substantially in the immediate aftermath of the Russian crisis, with output growth falling from about 8.5 percent in 1998 to 3.4 percent in 1999. Both exports and imports contracted substantially, resulting in a drop in the current account deficit from 6.1 percent of GDP in 1998 to 2.2 percent of GDP in 1999. Externally, exports to Russia, which accounted for more than 60 percent of total exports, fell during the second half of 1998 by 10 percent. Demand for Belarusian products was weak through 1999, showing signs of recovery only during the final quarter, with the revival of economic activity in Russia. Also, in the first quarter of 1999 as compared with 1998, except for investments, all the budget expenditures were smaller. The biggest cuts were done in national security (1.9 percent of GDP compared with 2.5 percent of GDP in the first quarter of 1998) and social policy (1.5 and 2.4 percent of GDP, respectively) where the expenditures were lowered almost by one third.

Kazakhstan

The Russian crisis was a hard hitting blow to the Kazakh economy. Kazakhstan lost its price competitiveness and its exports were in shambles. On the other hand, cheap Russian goods were flowing into the economy that was killing the domestic industries. There was huge downward pressure on the tenge, the Kazakh currency, and Kazakhstan's balance of payments worsened. However, the NBK

National Bank of Kazakhstan

-History:The National Bank was formed on April 13, 1993 with the reorganisation of the of the Soviet era Kazakh Republican bank to become the central bank of Kazakhstan.-External links:...

continued to maintain the value of the tenge. In fact, they had spent close to a billion dollars to maintain the level of tenge. Their foreign exchange reserves halved.

Moldova

Moldova received an IMF

International Monetary Fund

special mission advising the government on how to cope with the effects of the Russian crisis. Russia bought at that time 85% of Moldova's wine and brandy and most of its canned goods and tobacco. After the ruble crashed, most Russian importers put deals with Moldova on hold. Moldovan president Petru Lucinschi

Petru Lucinschi

Petru Chiril Lucinschi was Moldova's second President .- Biography :Petru Chiril Lucinschi was born on January 27, 1940 in Rădulenii Vechi village, Soroca County, Romania...

was quoted as saying that the Russian crisis had cost Moldova as much as five per cent of its GDP. The country's parliament was discussing a programme aimed at reducing imports and searching for new markets outside Russia.

Ukraine

The crisis cost a lot for Ukraine: the Hryvnia

Ukrainian hryvnia

The hryvnia, sometimes hryvnya or grivna ; sign: ₴, code: , has been the national currency of Ukraine since September 2, 1996. The hryvnia is subdivided into 100 kopiyok. In medieval times, it was a currency of Kievan Rus'....

devaluated by 60%, domestic prices increased by 20%, the National Bank of Ukraine

National Bank of Ukraine

National Bank of Ukraine is the central bank of Ukraine. Its headquarters building, constructed between 1902 and 1934, is located at no. 9 Institutska St., in Kiev-History:...

lost 40% of its gross reserves.

Uzbekistan

In the central Asian state, the government banned the free unlicensed sales of food, most of which is imported from Russia, as a preventative measure against price rises and panic.

External links

The Crisis in Russia: Some Initial Observations by Brian Henry and James Nixon, Economic Outlook, Vol. 23, No. 1, November 1998 (subscription required).
An Analysis of Russia's 1998 Meltdown: Fundamentals and Market Signals by Homi Kharas, Brian Pinto and Sergei Ulatov, Brookings Papers on Economic Activity, #1, 2001 (subscription required).
Lessons from the Russian Crisis of 1998 and Recovery by Brian Pinto, Evsey Gurvich, and Sergei Ulatov, The World Bank, February 2004.
Why Did the Ruble Collapse in August 1998? by Padma Desai, The American Economic Review Vol. 90, No. 2, 2000 (subscription required).
The Bank of Russia and the 1998 Rouble Crisis by William Tompson. In Vladimir Tikhomirov (ed.), Anatomy of the 1998 Russian Crisis (Melbourne: CERC, 1999).
A Case Study of a Currency Crisis: The Russian Default of 1998 by Abbigail J. Chiodo and Michael T. Owyang.
Chronology of the Russian Financial Crisis 1998 by Clifford Chance.
Lessons of the Russian Crisis for Transition Economies by Yegor Gaidar
Yegor Gaidar
Yegor Timurovich Gaidar was a Soviet and Russian economist, politician and author, and was the Acting Prime Minister of Russia from 15 June 1992 to 14 December 1992....

, Finance and Development, Vol. 36, No. 2 (June 1999).
Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the Public Safety Net by Michael Lokshin and Martin Ravallion, The Economics of Transition 8 (2), July 2000 (subscription required).
Overview of Structural Reforms in Russia after 1998 Financial Crisis by S.A. Vasiliev, International Monetary Fund, 16 February 2000.
International investors, contagion and the Russian crisis by Alexei Medvedev, BOFIT #6, 2001.
Financial crisis in the Russian Federation by Thierry D. Buchs, Economics of Transition 7 (3), 1999 (subscription required).
The Russian Default by Saul Estrin, Business Strategy Review 9 (3), September 1998 (subscription required).
Russia's Tax Crisis: Explaining Falling Revenues in a Transitional Economy by Daniel Treisman, Economics & Politics 11 (2), July 1999 (subscription required).
1999 IMF World Economic Outlook, Interim Assessment, Ch. II: The Crisis in Emerging Markets, International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...

, December 1999.
Russia and the IMF by Nigel Gould-Davies and Ngaire Woods, International Affairs 7 (1), January 1999 (subscription required).
Lessons from the Russian Meltdown: The Economics of Soft Legal Constraints by Enrico Perotti, International Finance 5 (3), 2002 (subscription required).
Russia's Silent Middle Class, by Carol Clark, CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...

, September 1998

The source of this article is wikipedia, the free encyclopedia. The text of this article is licensed under the GFDL.

Background and course of events

Crisis and effects

Political fallout

Recovery

Baltic states

Belarus

Kazakhstan

Moldova

Ukraine

Uzbekistan

See also

External links