Monetary Sovereignty, Sanctions and Russian Economic Policy — Peter Dorman

Until recently the will was missing, since, as Tooze documents, the Russian state ran surpluses to prevent any recurrence of 1998. What the MMT debate inside the country signifies is that at least some Russian policy experts understand that a current account surplus does indeed confer the ability to self-finance growth.

The freezing of central bank assets is significant, but only in relation to Russia’s demand for foreign exchange. As long as it has enough oil and gas revenue to not only finance sufficient consumer imports but also sustain the sovereignty that fiscal deficits require, it can continue on its present path. In the end there is no substitute for radically shrinking those revenues.

Econospeak
Monetary Sovereignty, Sanctions and Russian Economic Policy
Peter Dorman | Professor of Political Economy, The Evergreen State College