chapter  6
12 Pages

The economic situation in present-day Russia

WithV. V. POPOV

The Russian economy lost 45 percent of output during the transformational recession of 1989-98, income inequalities increased greatly, the crime rate doubled, and life expectancy went down from 70 to 65 years. The short-lived stabilization of 1995-98 (when the rouble was pegged to the dollar and inflation subsided) ended up in the spectacular currency crisis of August 1998 – the rouble then lost over 60 percent of its value in several months, inflation got out of hand again, and crime, suicides, and mortality increased once more.