Would the Russian Economy Turn into a Lost Decade?
Would the Russian Economy Turn into a Lost Decade?

Author(s): Miloš Bikár, Katarína Vávrová, Marina Sedliačiková
Subject(s): National Economy, Economic policy, Economic development, Financial Markets, Public Finances, Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: fiscal and monetary policy; commodity prices; exchange rate volatility; currency movements; public finances;
Summary/Abstract: During the last couple of years the Russian economy was marked by a severe problems, those could turn into a quite long-lasting recession. The economic sanctions and low commodity prices caused significant damage and economic turmoil. The corporate and state-controlled investment into Russia significantly fell jointly with sharp rubble depreciation against major currencies. The paper deals with the analyses and predictions of the Russian economy development and the main factors influencing the current and future economy and the structure of GDP. The objective of this article is to analyse the time-varying nature among Russian GDP, oil prices and some major macroeconomic variables. The results of the carried out research reflected that the oil prices has played a key role and has indeed changed the nature of correlation relationship between analysed variables. The paper highlights the monetary policy including currency prediction, public debts, inflation levels, as well as commodity export dependency.

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