Russian And Post Soviet Politics

2360 Words Apr 2nd, 2015 10 Pages
Thomas Blair
Professor Lisa Goddard
Russian and Post-Soviet Politics (POLI-354)
20 March, 2015
The Debacle of the Russian Ruble; Impending Instability on Geopolitics Historically, the ruble is one of Europe’s oldest currencies and has been in use since the 13th century. Over the past 100 years, the ruble has experienced two major economic crises and is on the brink of a third. The first crisis came after the overthrow of Tsar Nicholas II and the establishment of the Soviet Union in the early 1920’s. Under the regimes of Joseph Stalin, Nikita Khrushchev, Leonid Brezhnev, and Mikhail Gorbachev the Soviet ruble was able to stay on par with the value of the USD, due in large part to enormous overvaluation. This fiscal negligence came to its’ boiling point in 1991 following the collapse of the Soviet Union. What followed was a decade of hyperinflation, widespread poverty, and loss of foreign investment. Although Vladimir Putin has managed to calm a great deal of economic despair that plagued the country in the 1990’s, recent trends suggest Russia is on the verge of another economic disaster. If the Russian ruble is continuously devalued due to Western and European Union (EU) sanctions, then Russian foreign policy would grow increasingly volatile and potentially result in escalated conflicts as Putin would grow increasingly desperate to reassert his authority. Before addressing the current economic situation of the Russian Federation, one must observe the…
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