Russian Currency Crisis. Brian Billick Davin Costa Manuel Davila Tom Degnan Tom Lacny. Russian Currency Crisis. Currency Crisis Speculative attack on a country’s currency that can result in a forced devaluation and possible debt default
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An increase in the general price level of goods and services.
A decrease in purchasing power of the currency measured as a percentage increase in the consumer price index (CPI)
Optimism before Crisis
Graph take from –
Investor fears and worries severely weakens the Russian money markets (stock, currency, bond) – this forces Russia to devalue the ruble, and default on some risk, lowering prices and GDP further in 1998 and 1999.
Chart taken from - http://www.nes.ru/english/research/pdf/1999/Strebul.pdf
Graph take from - http://research.stlouisfed.org/publications/review/02/11/ChiodoOwyang.pdf