Support of the Stock Market – The Wasted Money

Actually, it is not quite correct to support the stock market by means of budgetary funds because it often turns out to be the wasted money. During the last crisis, support of the stock market was efficient because the VEB managed to earn by it. However, generally, support of the stock market is not the task of the government. In addition to that, it is rather difficult to predict the dynamics of the stock market.

We also believe that it is incorrect to spend international reserves on support of the ruble. At present, the Central Bank of the Russian Federation declares that it does not intend to inhibit fundamental changes in the exchange rate and will only smooth its fluctuations. We believe it is correct.

P.V. Тrunin, PhD (Economics), Head of the Monetary Policy Department