We do not know what would be the outcome of this war, but we know that (unless we are all die in a nuclear war), Russia faces a significant shock to its GDP and also a very high inflation.
Whether that inflation would be 50%, 100% or 5,000% (on a yearly basis) we do not know, but Russia has many historical experiences with hyperinflation.
Raging hyperinflation between 1917 and 1922 when the gold-based chervonets was introduced as part of the NEP.
Raging hyperinflation between 1917 and 1922 when the gold-based chervonets was introduced as part of the NEP.
Preobrazhensky called the ability of the govt to print money, "the machine-gun in the hands of the proletariat."
Stalin was very conservative in fiscal and monetary matters.
So were Khrushchev and Brezhnev.
But with "transition" inflation came back.
Stalin was very conservative in fiscal and monetary matters.
So were Khrushchev and Brezhnev.
But with "transition" inflation came back.
In 1992, inflation was about 1,600% (prices increase by a factor of 17 within a year); in 1993, it was about 900%, in 1994, it was 320%, and then it gradually went down.
But with the Asian crisis and contagion in 1998-99, as Russia went into default, inflation went up to 100%.
But with the Asian crisis and contagion in 1998-99, as Russia went into default, inflation went up to 100%.
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