Weaknesses of Strong Ruble

Abstract

The article describes the macroeconomic consequences of the overvalued ruble policy (1996-2010s). It explains the impact of carry trade on financial crises in 1998, 2008-2009, 2014. The five scenarios of future financial crises are discussing. Reveals the “formula” of New Course macroeconomic and financial policy that includes, as an element, a moderately weak ruble.

Keywords

• carry trade
• central bank
• currency crisis
• economic growth
• financial policy
• overvalued currency
• russian ruble rate