Goyo
3 years ago1,000+ Views
Russia Economy in Trouble; Putin to Blame?
"Vladimir Putin’s popularity reached a historical record in August when 52 percent of people told the Levada Center that they would vote for Putin if a presidential election was held the next weekend." Vladimir Putin is having a good year. This quote can tell you so much about how much Putin's reputation has been soaring in Russia. This is in stark contrast to this past January when Putin's approval rating was at 29%. So what has caused this? Recent polls claim it has been his successful international policy... Now let's forward to the attached report that says the Russian national bank will be raising the key interest rate to 17% to prevent the rapid devaluation of the rouble. What is causing this? "Falling oil prices and Western sanctions continue to weigh on the country's economy." => In other words, Putin's foreign policy. So how could these two things be painting two completely different canvases? It is simple. History has shown that flashy policies focusing on successful "war" campaigns often can overshadow the repercussions. In this particular case, the successful Russian "annexation" of Crimea, which led to these sanctions that are saddling the economy, has made Putin a very popular man. The problem, though, is now... The central bank is doing this because it knows that unless it forces the rouble (it now has lost half its against the dollar) to re-stabilize, panic will ensue. Raising the key interest rate, however, will have severely stunt borrowing, thus on economic growth. So, has Putin really done a good job? If we are too see the actions of the national bank, then the answer is a resounding NO...
4 comments
Looks like Putin really thought that he is a monarch in the 18th century, completely ignorant of 200 years of learned in the hard way lessons about how annex campaigns never pay off.
3 years ago·Reply
@orenshani7 but it has worked to win him popularity lol
3 years ago·Reply
@goyo, for a while, by Machiavellian tactics, but that never last too long.
3 years ago·Reply
@orenshani7 I would hope not
3 years ago·Reply
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