Monday, 31 July 2017

My thoughts on this 'Decline of Putin's Russia'


Russian oligarchs were created by the Government. It makes no sense to continue under this system. What the Government needs to do is tax natural monopolies at or near 100%, or to simply nationalize them - while reducing taxation on labor, consumption, and man-made goods at or near 0. As for the currency, the Government needs to accept only rubles in payment of its exports. This would expand demand for the Russian ruble. The Government's monetary policy should be set at permanent zero - no more subsidizing rentiers. And furthermore, the Russian economy needs to develop its own manufacturing capabilities. There is no future in remaining a resource based economy, relying on importing net aggregate demand from abroad to fuel your economy (via the export sector).

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