The Russian Ruble Crisis and its

S Aftermath
S. Summary
1 1. What were the causes of the surge in inflation in
Russia during the early 1990s? Could this have been
avoided? How?
2 2. What does the decline in the value of the ruble against
the dollar between 1992 and 1998 teach you about the

3
relationship between inflation rates and currency
values?

3. During the mid-1990s, the IMF wanted Russia to raise

4
tax rates, close loopholes in the tax system, and cut
public spending. Russia was unable to do this. Why?

4. In the early 2000s Russia cut tax rates for individuals

and corporations, and government tax revenues
surged. Why? Does this result suggest that the IMF
policy prescriptions were wrong?
Summary
1.What were the causes of the surge in inflation in Russia during the early 1990s?
Could this have been avoided? How?
2.What does the decline in the value of the ruble against the dollar between 1992
and 1998 teach you about the relationship between inflation rates and currency
values?
3.During the mid-1990s, the IMF wanted Russia to raise tax rates, close loopholes
in the tax system, and cut public spending. Russia was unable to do this. Why?
4.In the early 2000s Russia cut tax rates for individuals and corporations, and
government tax revenues surged. Why? Does this result suggest that the IMF policy
prescriptions were wrong?