Institutional Changes of the Russian Economy: From Market Policies to Monetary Consolidation

26 Pages Posted: 2 May 2005

See all articles by Isabel Pla Julian

Isabel Pla Julian

University of Valencia - Faculty of Economics

Abstract

The main characteristic of the transition from a planned to a market economy in Russia has been the barter economy. Firms are using non-monetary transactions as a result of the scarcity of the means of payment and as a means to avoid taxes and reduce fiscal obligations. The barter economy is a rational mechanism of survival and protection from new market reforms, and for taking advantage of the networks inheritated from the centralized period. This non-monetary functioning of the Russian economy has increased the costs of the economic system and new market economy reforms concentrated on monetary consolidation haven't produced the expected results, because public polices were not credible and policy makers didn't anticipate the appearance of new firms in the transition period.

Note: Downloadable document is in Spanish.

Keywords: economic transition, monetary markets, barter economy

JEL Classification: E42, L22, P26, P39

Suggested Citation

Pla Julian, Isabel, Institutional Changes of the Russian Economy: From Market Policies to Monetary Consolidation. Available at SSRN: https://ssrn.com/abstract=702582

Isabel Pla Julian (Contact Author)

University of Valencia - Faculty of Economics ( email )

Valencia, E-46022
Spain

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