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<center>{{efficient}}</center>
<center>[[Russian Economy|Home]] | [[Overview]] | [[Resources]] | [[Macroeconomic Players]] | [[The Ruble Crisis of 1998]] | [[Economic Performance]] </center>




==Overview:==
'''1998''': the ruble collapses and Russia's GDP is down by 40% from its level in 1991


The experiment involves putting students into teams of 4 or 5 which function as market-makers in a asset market. The students have partial knowledge of certain characteristics of this asset, but not full information. The experiment begins when each team posts a bid and ask price for the asset which is displayed for all market participants.  Trading commences as each team is allowed to make one and only one trade with a competing market maker. Trades as well as bid/ask spreads are posted by the moderators who also vary information based on how the market adjusts.  After each round of trading, the teams are allowed to revise their bid/ask spreads. The market makers should find that the effective bid/ask spread in the market narrows and eventually reaches equilibrium based purely as a function of trading since no new information is provided. Depending on the class and students, variations can be introduced including informed outside traders or economic releases. These variations may greatly alter the market at first, as overreaction could occur. The experiment concludes when the bid/ask spreads have effectively bracketed the “true value” of the asset known only to those conducting the experiment.
'''1999''': Yeltsin resigns and appoints Vladimir Putin as his successor


'''2001''': Russia's share of the world's gross domestic product is only 1%


<center>{{efficient}}</center>
'''2002''': Russia becomes an ally of NATO
 
'''2003''': between 1999 and 2003, Russia economy has grown by about 33%
 
'''2005''': a Caspian oil pipeline opens that bypasses both Russia and the Arab countries
 
'''2005''': Russia ends its de facto dollar peg and aligns the rouble with the euro
 
'''2007''': Vladimir Putin's party wins more than 60% of the vote in parliamentary elections
 
Why mention Oil?
 
80% of Rusian exports consist of natural resources with oil and natural gas accounting for 55%. Prices in commodities such as oil have led to both periods of catastrophe and prosperity for Russia's economy.
 
Why mention Putin?
 
In Putin's first term, he carried on Yeltsin's economic legacy of supporting free-market activity.  Recently, Putin has been activley centralizing Russia's political power inside the Kremlin.  Does this mean the same for Russia's economy, which has seen tremendous progress, thanks to the private sector, since the 1998 collapse? 
 
 
http://www.scaruffi.com/politics/russians.html
 
Nick Marshall

Latest revision as of 04:03, 15 December 2007

Home | Overview | Resources | Macroeconomic Players | The Ruble Crisis of 1998 | Economic Performance


1998: the ruble collapses and Russia's GDP is down by 40% from its level in 1991

1999: Yeltsin resigns and appoints Vladimir Putin as his successor

2001: Russia's share of the world's gross domestic product is only 1%

2002: Russia becomes an ally of NATO

2003: between 1999 and 2003, Russia economy has grown by about 33%

2005: a Caspian oil pipeline opens that bypasses both Russia and the Arab countries

2005: Russia ends its de facto dollar peg and aligns the rouble with the euro

2007: Vladimir Putin's party wins more than 60% of the vote in parliamentary elections

Why mention Oil?

80% of Rusian exports consist of natural resources with oil and natural gas accounting for 55%. Prices in commodities such as oil have led to both periods of catastrophe and prosperity for Russia's economy.

Why mention Putin?

In Putin's first term, he carried on Yeltsin's economic legacy of supporting free-market activity. Recently, Putin has been activley centralizing Russia's political power inside the Kremlin. Does this mean the same for Russia's economy, which has seen tremendous progress, thanks to the private sector, since the 1998 collapse?


http://www.scaruffi.com/politics/russians.html

Nick Marshall

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