Juxtapose these four statements:
1. No crisis in Russia
2. Inflation edges higher in Russia
3. Capital flight gaining momentum in Russia
4. Finance Minister predicts a stable ruble
Statements 1 & 4 are from the Canutian school of economic management, albeit that is a little unkind to the old Dane who understood the limits of his power.
Statements 2 & 3 are statements of fact. They might also have added that the Ruble (against the $ not against the $/Euro basket) has already fallen out of bed. Rubles for 1 month delivery are already trading at 27.5/$.
Better that the powers that be admit to the problems and manage expectations down rather than being caught by the lie.
It would appear that the “wasted era” has passed and we are in to the payback era.
As an aside there was another wasted era which ended abruptly in August 1998 – but that is just rose-tinted glasses.
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