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Friday, October 21, 2016

The government has proposed to make a dollar for 75 rubles

Financial University under the government and the Institute of economic forecasting RAS sent to the Cabinet of Ministers proposals for the restoration of GDP growth within one to two years. However, it will have to return to the fiscal policy of the early 90-ies and to reduce the rate of the ruble.

photo: Gennady Cherkasov

A document signed by academicians Mikhail Eskindarov and Victor Evandera, was submitted to the Cabinet of Ministers in the initiative order since 20 July, but the White house is on it still does not respond, writes “Kommersant”.

The main points of the economic program began a “managed float of the ruble,” as opposed to inflation targeting and the undervaluation of the national currency against the dollar (the recommended rate is 75 rubles per dollar).

To restore economic growth proposed unsecured issuance in the $ 3.6 trillion rubles a year. In this concept it is necessary for the lowering of the rate, and reallocation of investments in the economy in favor of the “real sector”.

In addition, the team offers Iskanderova go to the direct emission of the Central Bank financing the budget deficit. This model was used by the Central Bank since autumn 1992 and summer 1994, and, as the newspaper describes it, has demonstrated “outstanding ability in the organization of hyperinflation”.

The publication notes that in General “the ideas of alternative financial University, emphasized the current rate of Ministry of Finance and the financial-economic block of the government”. At the same time, the suggested strategy largely coincides with proinflationary program “Stolypin club”.

Earlier, on 25 July, “Vedomosti” wrote that President Vladimir Putin has instructed to finalize the report of the Stolypin club, that on its basis to prepare a new program of economic development (as an alternative to the program of the ex-Minister of Finance Alexey Kudrin).

In particular, “stolypins” he proposed to increase investment, pumping up the economy with public money both from the budget and by an additional issue. It was assumed that the Central Bank needs to print half a trillion rubles.

Later, the Minister of economic development Alexei Ulyukayev said that the proposals of experts, United on the platform of the Stolypin club, are not an alternative to the ideas of Kudrin and his supporters.

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