Fiscal Crisis and Macroeconomic Stabilization in Russia

Annotation
The economic liberalization in 1992 allowed Russia to try solving various urgent problems: to liquidate monetary overhang and shortage of goods, create money-based market mechanisms of exchange, improve public finance, start negotiations on restructuring the sovereign debt accumulated by the Soviet Union, raise official foreign reserves, and open the economy for international trade. Among important institutional changes at that time were establishment of the two-level banking system, privatization of a considerable part of state enterprises, and capital market creation.