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Smith v/s Keynes
RUSSIAN ECONOMY
Presented by:
Raja Vignesh D
Sairam T A
Srinivasan R
Russia at a glance
 Largest country in the world
 Ninth most populous country
 Russian economy - Tenth largest by Nomin...
Economic history
 Fall of the Soviet economy
 Transition to market economy after the dissolution
of the USSR (1991-1995)...
Fall of the Soviet economy
 Industrial output of the Soviet Union was going to
the military
 Budget allocated for milita...
Transition to Market
Economy
 Moved from a centrally planned economy to a
globally integrated market economy
 Real GDP f...
Recovery and growth
 Ruble was devalued which made domestic
producers more competitive nationally and
internationally
 A...
Current performance and
issues
Corruption in Russian
Govt.
The tumbling Ruble
Soaring Inflation
GDP growth on the
decline
Plummeting Gasoline
prices
Fiscal Policy measures
Short Term:
 Maintain steady FDI flow
 Create an anti-crisis spending budget
 Raise the rate of ...
Fiscal Policy measures
Long Term:
 Increase defence supplies
 Reduce degree of inequality of income and
wealth
 Infrast...
Monetary Policy measures
 Bank Rate
 Cash Reserve Ratio
 $371.6 Billion Forex
 Private Sector Loan
 Govt. bonds and s...
Consolidated Plan
 Stabilize the Reserve fund
 Diversify source of funds
 Explore new markets for steady oil supply
 T...
THANK YOU
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Russian Economy

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Russian Economy

  1. 1. Smith v/s Keynes RUSSIAN ECONOMY Presented by: Raja Vignesh D Sairam T A Srinivasan R
  2. 2. Russia at a glance  Largest country in the world  Ninth most populous country  Russian economy - Tenth largest by Nominal GDP  One of the largest producers of oil and natural gas globally  GDP (nominal) : $1.236 trillion  HDI (2014): 50th  Currency – Russian ruble (RUB)
  3. 3. Economic history  Fall of the Soviet economy  Transition to market economy after the dissolution of the USSR (1991-1995)  Russian financial crisis (1998)  Recovery and growth (1999-2014)
  4. 4. Fall of the Soviet economy  Industrial output of the Soviet Union was going to the military  Budget allocated for military was at the expense of investment in rest of the economy  Miners were not working as they had no incentives to work  Agricultural sector was also hit by the crisis
  5. 5. Transition to Market Economy  Moved from a centrally planned economy to a globally integrated market economy  Real GDP fell by more than 40%, and Hyperinflation wiped out savings  Revenue collection became difficult for the Government amid the collapsing economy  Russia depended on short term borrowings to finance budget deficits.  Became the largest borrower from the IMF with loans totalling $20 billion.
  6. 6. Recovery and growth  Ruble was devalued which made domestic producers more competitive nationally and internationally  After Putin took over, Russian GDP doubled from 0.7 trillion USD to 1.2 trillion USD  After 16 years of negotiations, Russia’s membership to WTO was accepted in 2011
  7. 7. Current performance and issues
  8. 8. Corruption in Russian Govt.
  9. 9. The tumbling Ruble
  10. 10. Soaring Inflation
  11. 11. GDP growth on the decline
  12. 12. Plummeting Gasoline prices
  13. 13. Fiscal Policy measures Short Term:  Maintain steady FDI flow  Create an anti-crisis spending budget  Raise the rate of Savings and Investment for increasing capital formation  Pact with Middle East countries
  14. 14. Fiscal Policy measures Long Term:  Increase defence supplies  Reduce degree of inequality of income and wealth  Infrastructural Development  Adopt anti-inflationary taxation policy
  15. 15. Monetary Policy measures  Bank Rate  Cash Reserve Ratio  $371.6 Billion Forex  Private Sector Loan  Govt. bonds and securities  Over the counter trade
  16. 16. Consolidated Plan  Stabilize the Reserve fund  Diversify source of funds  Explore new markets for steady oil supply  The Central Bank of Russia should have a certain level of independency from the government to achieve low inflation  Balance of Payment equilibrium
  17. 17. THANK YOU

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