15.02.09

According to the Center of Macroeconomic Analysis and Short-Term Forecasting (CMASTF), stagflation has come to Russia.

Stagflation is defined as a decline in industry and GNP, accompanied by an increase in consumer prices and unemployment. Stagflation typically occurs when high prices are maintained by monopolies during a cyclical downswing and when government policies attempt to replace market demand by injecting budgetary funds into the economy.

Experts at CMASTF explain that, in such a situation, an attempt by authorities to start the economy through mass injections of budgetary funds may only create conditions for accelerated growth in the money supply and the even greater acceleration of inflation.

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Source: «КоммерсантЪ»