April 3-4 2018
Russian Academy of Sciences (RAS). Key theme: "Russia and the world: image of the future".
Mikhail Khazin: "We have to make the investment currency of the ruble"

Published: December 9th, 2016

In 1991, it was decided to be integrated into the global dollar system. Right or wrong, it was - it's a separate issue. It was not at the time most likely alternative. Note that we have to build in the worst way, that is, we gave all we could give, and including the fact that it was possible not to give up, and even the fact that we, in general, gave up that nobody wanted to to take. So what about a complaint to the organizers of this outrage, but the good of this is no longer there, because this issue has already been resolved. Dot. Or should we say, "Yes, these people have committed a crime. They must be put to death. Some, respectively, dug out from the grave, pushed in the gun and shoot." Of course, it is the way, but it is not a constructive beginning.

And the essence of the model in terms of economic policy is based on the following logic. Usually it refers to Gaidar, but, actually, he got it as some ready-made model. The essence is the following. We disclaim domestic investment in general, we rely on foreign investments, foreign investments are only in the event that low inflation. For low inflation is necessary to clamp the money supply. Thus, if we are more than the tight monetary policy conduct, the more likely that we will get foreign investment, and we will be happy.

In this logic there are error in each point. This is a fundamentally important thing, which is to be understood as of today. Pay attention, this logic worked in the 2000s, because we had the influx of dollars to the foreign investments return, and, accordingly, did not work in the 1990s and 2010s, because we there are no dollars. All those dollars that we have, that we get, go for a refund of already made investments. All this machine does not work anymore. All the rest - a consequence. I add a small personal note: my ultimate swearing liberal team took place in November 1996 when I, as head of the credit policy of the Department of the Ministry of Economy - Arkady Samohvalov involved in this process - has prepared a report for the board of the non-payment, which in the figures shown, that at low monetization monetization further reduction leads to an increase in inflation.

We need to understand that we need to change the basic model, we must abandon the idea that the only focus should be on foreign investment. We need to make the investment currency of the ruble. It should be written in red letters on any program. There is no need to put anything more on the cover. If you make the investment currency of the ruble, you will increase the monetization. In order to monetize growing, we need emissions. To ruble emission did not pass into dollars, you need to limit monetary policy and changes in tax policy. Today the Government ignores any economic policy, except for balancing the budget. We have to deal with it.

I believe that it is the phrase "we have to make the investment currency of the ruble," and it is necessary to write on banners. All the rest - a consequence.