
Originally Posted by
Serge_spb
Why Russia Is Destroying Its Own Economy
Jacob Davidson
When the United States was facing recession, our Federal Reserve lowered interest rates to near-zero levels—and has kept them there. That stimulated the economy by making spending and investing more attractive (credit was cheap) and turning saving into a losing proposition (on top of low interest payments, money in the bank could potentially be eaten away by inflation).
But Russia has apparently adopted the opposite strategy. Instead of lowering rates to spur investment, the nation’s central bank has raised its key rate to a whopping 17%.