Marek Dombrovski: «Currency crisis in Russia is a regularity»

11:04, November 30, 2017

A well-known expert in the area of economics explained why today such phenomena are inevitable

The research fellow at Bruegel (Brussels European and Global Economic Laboratory), Marek Dombrowski met with students of Ural Federal University and spoke about currency crises in the post-Soviet countries. He noted that in Russia this phenomenon could be considered a regularity, because there is a need for political reform.

«Based on the experience of the last three years, we can assume that the currency crisis in Russia, unfortunately, is a regularity. In order to break this vicious circle, it is necessary to seriously strengthen the institutional foundations of macroeconomic management, for example, the independence of the Central Bank of the RF, and the microeconomic, more significant and complex front» — said Professor of NRU "HSE", researcher at Bruegel and Center for Social and Economic Research in Warsaw , Marek Dombrowski.

According to him, it is necessary not only to ease the regulatory regime, but also to return privatisation, in a broader sense, it is necessary to return to democratisation.

Professor Dombrovski especially noted that in today's world, there is virtually no chance of avoiding the risk of a financial crisis.

«It is not easy to find an example of countries that have escaped the crisis. In 2014-2015, it was completely bypassed by the Baltic countries; there were also countries that reacted less: Armenia and Kyrgyzstan. Azerbaijan was able to avoid these shocks in 1998-1999 and 2008-2009, but it was a period of double boom: there were high oil prices and rapid growth of its production» added Prof. Dombrowski.

As ways of avoiding the crisis, the expert suggested strengthening macro and microeconomic foundations of the economy. This means that there is a need for a fairly broad reform of the country's economy, including its institutional and political component.

Reference

XII International Conference «Russian Regions in the Focus of Changes» (November 16-18, 2017, Ekaterinburg).
Organisers: Ural Federal University, Graduate School of Economics and Management, Analytical Center «Expert», Expert Ural Business Magazine.

For many years the conference has been one of the biggest discussion platforms in the Urals covering issues of regional development and involving representatives of executive authorities, academia, medium and large industrial business leaders from different regions. Every year leading Russian economists take part in the conference.