Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • March–April 2015
  • Article
  • Foreign Policy

The Almighty Ruble

By: Debora L. Spar
  • Format:Print
ShareBar

Abstract

At 1 AM Moscow time on December 16, Russia's central bank announced a massive hike in the country's interest rate, from 10.5% to 17%. It's not clear how Russian leader Vladimir Putin and his colleagues could realistically have expected to achieve anything by hiking the interest rate. Unless the increase was intended to attract foreign capital—a very unlikely event—it could only have led to higher inflation and greater downward pressure on the ruble. What Russia should do is diversify its economy away from anything that involves extracting resources out of the ground and selling them at volatile, internationally set prices. Until that happens, Russia and its chest-thumping leader will be caught in a cage of their own making, acting symbolically but without any real effect. And the country will remain on the long list of states making policies based on nostalgia rather than sense. Adapted from the source document.

Keywords

Monetary Policy; Economy; Policy; Currency; Interest Rates; Sovereign Finance; Russia

Citation

Spar, Debora L. "The Almighty Ruble." Foreign Policy 211 (March–April 2015).
  • Find it at Harvard

About The Author

Debora L. Spar

General Management
→More Publications

More from the Author

    • February 2022
    • Faculty Research

    Linda Oubré at Whittier College

    By: Debora L. Spar and Julia Comeau
    • November 2021
    • Faculty Research

    Hitting Home: Amazon and Mary's Place

    By: Paul M. Healy, Debora L. Spar and Amy Klopfenstein
    • June 2021
    • Faculty Research

    Linda Oubré at Whittier College (C)

    By: Debora L. Spar and Haley P. Brown
More from the Author
  • Linda Oubré at Whittier College By: Debora L. Spar and Julia Comeau
  • Hitting Home: Amazon and Mary's Place By: Paul M. Healy, Debora L. Spar and Amy Klopfenstein
  • Linda Oubré at Whittier College (C) By: Debora L. Spar and Haley P. Brown
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Digital Accessibility
Copyright © President & Fellows of Harvard College