read the articles. > the second reason for russias party economy relates to its unusual monetary policy. in order to deal with high inflation the central bank has raised interest rates from 7.5% to 18%. more increases may be on their way. this has the effect of strengthening the rouble by attracting foreign investment from friendly countries such as china and india, which in turn cuts the price of imports and thus inflation. it also encourages people to save, trimming consumer spending. in a normal economy higher rates would hurt indebted households and companies, as their cost of repaying debt rose. yet the government has almost entirely shielded the real economy from tighter monetary policy. there is a bewildering array of schemes. > >yet the government has almost entirely shielded the real economy from tighter monetary policy.
Russian Federation