The 1998 Russian Financial Crisis

From the Paper:

"The largest of the several countries to experience currency crises related to the "Asian Flu" of 1997-1998, Russia precipitated the collapse of its currency, the ruble, by announcing a moderate devaluation and a "freeze," or effective default, on much of its outstanding debt. Ultimately, Russia's currency crisis was caused by a fundamental inconsistency between its domestic policies: Russia could not maintain the ruble at a high fixed exchange rate while running a money-financed budget deficit. The magnitude of the crisis that ultimately occurred was aggravated by the phenomenon of economic contagion. As currency crises struck several Asian emerging economies, international investors increasingly scrutinized their Russian holdings, while their confidence in the Russian government declined. Indeed, Russia stands apart from the other nations that suffered from the Asian economic crisis, because Russia repeatedly suffered economic crises since Russian markets were created in 1992. Declining government revenues provided the shock sufficient to provoke a crisis. "

More papers on The 1998 Russian Financial Crisis:

• Research Paper # 23304 : "Russian Financial Crisis 1998: A Self-made Crisis"
• Essay # 30811 : "The Russian Financial Crisis of 1998"

APA Citation:

MLA Citation: