ABSTRACT
The crisis of August 17, 1998, signified a kind of intermediate termination of the economic reforms in Russia that had begun in November 1991 and lasted almost eight years. In Russia, the situation is complicated by the fact that under the Constitution, the executive branch is independent of the legislature, while the parliament bears no responsibility for its own economic policies enacted in response to social demands. In light of the foregoing, the priorities of Russian economic policy over the midterm period become clear. A flexible method of servicing Russia's foreign debt would solve many domestic economic and social problems. The most important element of economic growth is the transformation of savings into assets through the national financial market, most significantly the banking system. The degree to which the bodies can resist populism in reforming taxation will be an important indicator of the readiness of Russian centrists to execute a responsible economic policy.
