• Valmond@lemmy.world
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      21 hours ago

      Because russia is not prepared at all for a recession. They have high inflation and stagnation at the moment (because of burning cash for the war, among other things), this is called “stagflation” and is just by itself a hopeless mess; if you up the steering rate to stop the stagnation and you kill the economy (the rate is already at a ridiculous 21%), lower the rate to favor economic growth and the inflation (which is according to the kremlin somewhere at 10%, but at over 70% for food according independent alalysists) will spiral out of control.

      It’s already an impossible problem to solve, add a global recession and it just gets way worse.

      • aesthelete@lemmy.world
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        17 hours ago

        It’s a problem you encounter because money is just an abstraction for real world conditions and resources. I think people forget that. Printing more money doesn’t make your country magically have more resources. It doesn’t manufacture tanks for you or vanquish your enemies.

        I still remember the picture from the history book where in Germany between ww1 and ww2 they were burning bank notes for warmth because inflation made the currency almost completely worthless.

        • Valmond@lemmy.world
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          2 hours ago

          The russian economy is not only tied to but dependent on the wests import of natural resources.

          How in the world did you figure russias economy is not tied to “our” (I’m european, but the us and eu economies are all intertwined) economy? “Famously” so too?

          If USA says don’t buy russian oil or you’ll get secondary sanctions (e.g. you can’t trade with the US) then india, china will (and are) stop buying russian oil. This is what is actually happening by the way.