This paper is published in the Russian Journal of Economics, Volume 2, Issue 3, September 2016, Pages 302–326.
Since the collapse of the Soviet Union, its successor states have suffered from cyclical currency crises. The most recent episode of 2014–2016 was caused by a combination of external and domestic factors.
The former include tighter US monetary policy, slower global growth, and declining commodity prices, whereas the latter include the former Soviet Union (FSU) economies’ extreme macroeconomic fragility (a legacy of past crises), numerous microeconomic rigidities and structural distortions in addition to governmental deficits.
In addition, the Russian–Ukraine conflict dealt a heavy blow to …read more