Thursday, April 18, 2013

Mother Russia Feeling the Heat

Russia has not been in the news too recently with regards to the economic crisis in Europe, but might now be facing their own problem. According to this article, they could be dipping into a possible recession if growth does not pick up in the remainder of 2013.

Putin's economic aide is '"opposed to heating up the economic growth by acceleration of inflation."' She feels the central bank, Bank Rossii, should focus more on economic growth trends. As well, she would like to implement monetary and credit policy to stimulate the economy.

In my own personal opinion, I feel some of the Cypriot crisis held a factor in contributing to this mess. This could be fixed by using reserves to buy other currency and start remaking profits. As well, taking money out of small islands, like Cyprus, could help their cause in the future. 

What is your take on the matter and what could be a possible solution?

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