Economic Sanctions Not Key Cause of Russia’s Possible Recession

shost1Frank Shostak writes in today’s Mises Daily: 

According to commentators, sanctions imposed by the US and the European Union are pushing Russia toward a recession. However, we hold that some key Russian economic data have been displaying a weakening prior to the annexation of the Crimea to Russia. This raises the likelihood that sanctions might not be the key factor for an emerging recession…

Now, to counter a further weakening in the ruble against the US dollar, the Russian central bank has raised the seven day repo rate by 1.5 percent to 7 percent. The price of the US dollar in ruble terms rose to 36.3 in March from 30.8 rubles in March last year — an increase of 18 percent.

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