Bofferbrauer2 said:
Yeah, Russia's economy is overheating, and there's pretty little they can do against it short of ending the war: Basically, real inflation is close to 30% already, and the full employment means that wages will continue to rise fast, especially in anything military-related. But this will fuel the inflation further and further. However, while I agree with February 1917, I disagree with the country. Both Russia's economy and war effort are very comparable to Germanys during WW1. Germany also went through significant inflation during the war, but it's only afterwards where all the affter-effects started to bite and send the country onto the course of a hyperinflation. I see the Rouble soon being worth rubble at this rate. |
The best thing for the Russians to do is curb inflation, but if that happens it won't be an easy choice, because the economy will have to slow drastically. They will have a horrible case of stagflation in other words where both slowdowns and inflation occur.
They are doing this to themselves. It's not just the oil prices or inability to trade with the rest of the world.
Also, the lack of labor and military economy are making this worse.
I was going to put some $$$ into russian stocks last year, in the hope that they would recover after the war was over. But i'm glad that i didn't do this, because the trade issues will be in place for a while.
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