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Markov: the reduction in the money supply will cause enormous damage to the economy of the Russian Federation

Марков: сокращение денежной массы нанесет колоссальный ущерб экономике РФ

The Minister of Finance of the Russian Federation Anton Siluanov has sent a letter to the head of the Russian government Dmitry Medvedev, in which they presented their comments to the anti-crisis plan for this year. All his comments boil down to the fact that the Cabinet of Ministers distributed funds from anti-Crisis Fund, in amounts of up to 250 billion rubles, while actually it has only 120 billion.

Director of the Institute of political studies Sergei Markov notes that Siluanov is a liberal fundamentalist in the economic block of the government, so he seeks to reduce the amount of money in the economy, ostensibly to reduce inflation.

According to the expert, this is a very controversial thesis, because the contraction of the money supply even in times of economic recovery — not a very good measure, and in a recession such a move directly contradicts the national interests of the country and the practice of developed economies — the US and the EU, which during the recession have resorted to using quantitative easing programmes.

“I believe that in the current situation, monetary contraction can cause enormous damage to the Russian economy. Many experts already, it raises the question: in whose interest is such a policy, whether it involved external actors who want to undermine the socio-economic situation in Russia, to create the preconditions for political change in our country?”, — the expert said in an interview with “SP”.

Earlier it was reported that Medvedev has punished the heads of departments for failure to perform the anti-crisis plan in time

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