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Transcript
Russia’s Financial Crisis (cont.)
• The IMF offered loans of official international
reserves to try to support the fixed exchange rate
conditional on reforms.
• But in 1998, Russia devalued the ruble and
defaulted on its debt and froze financial asset
flows.
• Without international financial assets for
investment, output fell in 1998 but recovered
thereafter, partially due to the expanding
petroleum industry.
• Inflation rose in 1998 and 1999 but fell thereafter.
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