An influential global body has forecast Russia’s economy will grow faster than all of the world’s advanced economies, including the US, this year.
The International Monetary Fund (IMF) expects Russia to grow 3.2% this year, significantly more than the UK, France and Germany.
Oil exports have “held steady” and government spending has “remained high” contributing to growth, the IMF said.
Overall, it said the world economy had been “remarkably resilient”
“Despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops,” the IMF said.
That’s pretty old school thinking.
As though your village only has so many carrots so giving everyone twice as much money means carrots will cost twice as much.
These days the thinking is, if everyone has a little money then more people will grow more carrots to sell.
The extra money floating around motivates people to produce value in order to win some of that cheddar.
Of course, this only works up to a point.
Ah yes I recognize this economic model.