Putin Makes Right Economic Moves, Says the Right Things

These unwarranted attacks on the Russian economy, and blaming Putin for the USA destabilization of the Ukraine, are giving Putin the chance to make needed free market advances.

Neil Shearing, chief emerging markets economist at Capital Economics, said the changes “in essence amount to a move to a free-floating rouble”. He added that the foreign exchange policy adjustment “should help to limit the risk that the plunge in the rouble over the past month develops into a self-fulfilling currency crisis”.
A weak rouble is not necessarily all bad for the Russian economy. It will help exporters and offset the effect of weak oil prices on government revenues. But the speed of its slide is stoking inflation and so hurting consumers.

Bravo.  Floating currency is so grown up!  Next, he is saying the right things, things which need to be said:

We get together for other reasons. We get together so as to talk frankly with each other. We need to be direct and blunt today not so as to trade barbs, but so as to attempt to get to the bottom of what is actually happening in the world, try to understand why the world is becoming less safe and more unpredictable, and why the risks are increasing everywhere around us.
Today’s discussion took place under the theme: New Rules or a Game without Rules. I think that this formula accurately describes the historic turning point we have reached today and the choice we all face. There is nothing new of course in the idea that the world is changing very fast. I know this is something you have spoken about at the discussions today. It is certainly hard not to notice the dramatic transformations in global politics and the economy, public life, and in industry, information and social technologies. 

The Russians are making smart moves in the face of USA aggression.  The Russians have a worldwide audience.  Give it a read to see what others think.

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