”Stagnant but stable Russian economy”

maj. 16, 2016

Anders Åslund, expert on the eastern European economies visited the SNS / SIFR Finanspanel on May 12 to discuss the state of the Russian economy. Elsa Håstad, Director of Europe and Latin America at Sida was discussant and Pehr Wissén, SIFR moderated the meeting.

Anders Åslund talked about the effects of the financial sanctions in place since 2014 and argued that they have been very effective. In fact, the last seven years in Russia have been characterized by minimal or negative growth, lower oil prices and state and crony capitalism. At the moment, Russia is enforcing a strict monetary policy focusing rather on defeating inflation than stimulating the economy. Stability is preferred over dynamism.

Elsa Håstad agreed with Anders Åslund that more conflicts with Russia involved are to be expected in the future. She stressed that it is important not to give in to the Russian narrative portraying amongst other Europe and Sweden as enemies, but to demonstrate other possible solutions.

The Finanspanel is the meeting forum of SNS and SIFR for the financial sector.