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Government Stimulus or Economic Incentives?

Author

Listed:
  • Kudrin, A.

    (Saint Petersburg State University, Saint Petersburg, Russia)

  • Gurvich, E.

    (Economic Expert Group, Moscow, Russia)

Abstract

The authors demonstrate that the recent performance of Russian economy is lagging far behind both targets set by the government and performance of the global economy. Arguments are suggested that possible effects of monetary and fiscal stimulus suggested by some economists most likely will turn to be negative in a medium run. The major macroeconomic and institutional impediments to growth are outlined and policies required to address these obstacles are indicated. The latter include measures to restore macro sustainability, to resolve structural problems, and improving public institutions. Institutional progress requires denationalization (not only in terms of ownership, but also in functional terms, as many mixed and private-owned banks and companies in fact serve as governments' agents), property rights protection, and alleviating excessive regulatory burden on business.

Suggested Citation

  • Kudrin, A. & Gurvich, E., 2015. "Government Stimulus or Economic Incentives?," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 179-186.
    • Handle: RePEc:nea:journl:y:2015:i:26:p:179-186
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    References listed on IDEAS

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    Cited by:

    1. Buklemishev, O., 2016. "Overcoming Investment Pause in the Russian Economy," Journal of the New Economic Association, New Economic Association, vol. 29(1), pages 160-167.
    2. Stepanova, A. & Podukhovich, D., 2023. "CEO decision-making horizon and R&D investments. Evidence from Russia," Journal of the New Economic Association, New Economic Association, vol. 59(2), pages 85-118.
    3. Gurvich, Evsey, 2016. "Institutional constraints and economic development," Russian Journal of Economics, Elsevier, vol. 2(4), pages 349-374.

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    More about this item

    Keywords

    Russian economy; long-term development; economic stimulus;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P4 - Political Economy and Comparative Economic Systems - - Other Economic Systems

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