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Currency crises in post-Soviet economies — a never ending story?

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  • Dabrowski, Marek

Abstract

Since the collapse of the Soviet Union, its successor states have suffered from cyclical currency crises. The most recent episode of 2014–2016 was caused by a combination of external and domestic factors. The former include tighter US monetary policy, slower global growth, and declining commodity prices, whereas the latter include the former Soviet Union (FSU) economies’ extreme macroeconomic fragility (a legacy of past crises), numerous microeconomic rigidities and structural distortions in addition to governmental deficits. In addition, the Russian–Ukraine conflict dealt a heavy blow to both economies and their neighbors. Effective anti-crisis policies must aim at eliminating all deep-rooted causes of repeated financial and macroeconomic turbulence and must involve deep structural and institutional reforms in the entire region.

Suggested Citation

  • Dabrowski, Marek, 2016. "Currency crises in post-Soviet economies — a never ending story?," Russian Journal of Economics, Elsevier, vol. 2(3), pages 302-326.
    • Handle: RePEc:eee:rujoec:v:2:y:2016:i:3:p:302-326
    DOI: 10.1016/j.ruje.2016.08.002
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    Cited by:

    1. Vinokurov, Evgeny & Demidenko, Mikhail & Korshunov, Dmitry & Kovacs, Mihaly, 2017. "Customs unions, currency crises, and monetary policy coordination: The case of the Eurasian Economic Union," Russian Journal of Economics, Elsevier, vol. 3(3), pages 280-295.
    2. Marek Dabrowski, 2017. "Post-Communist Transition and Monetary Disintegration," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(4), pages 03-11, January.
    3. Olli-Pekka Hilmola, 2021. "Inflation and Hyperinflation Countries in 2018–2020: Risks of Different Assets and Foreign Trade," JRFM, MDPI, vol. 14(12), pages 1-16, December.
    4. Ferrucci, Edoardo, 2020. "Migration, innovation and technological diversion: German patenting after the collapse of the Soviet Union," Research Policy, Elsevier, vol. 49(9).
    5. Viktar Dudzich, 2022. "Real Exchange Rate Misalignments and Currency Crises in the Former Soviet Union Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(3), pages 384-416, September.
    6. Batsaikhan, Uuriintuya & Dabrowski, Marek, 2017. "Central Asia — twenty-five years after the breakup of the USSR," Russian Journal of Economics, Elsevier, vol. 3(3), pages 296-320.
    7. Yabesh Ombwori Kongo & Elvis Kimani Kiano & Joash Ogolla Ogada & Peter Isaboke Omboto, 2023. "The Effect of Debt Service Ratio and Exchange Rate on Public Debt Sustainability in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 302-312, November.
    8. Marek Dabrowski, 2017. "Post-Communist Transition and Monetary Disintegration," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(04), pages 03-11, January.

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    More about this item

    Keywords

    currency crisis; former Soviet Union; Russia; Ukraine; global financial crisis; commodity prices; monetary regimes;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • G01 - Financial Economics - - General - - - Financial Crises

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