Currency Crisis in Russia on the Spun of 2014 and 2015: Causes and Consequences

AbstractWe propose an interpretation of the currency crisis and the stability of the national currency, project the consequences of the currency crisis for the Russian economy, and define perspective directions of stabilizing the Russian rouble. Events in the Russian currency market are defined as a currency crisis based on the statistical data on the dynamics of the US dollar against the Russian rouble in 2014 and the first quarter of 2015. The author's vision of the current currency crisis in Russia was formulated. The factors of internal and external instability of the Russian rouble were determined. Possible impacts of the current monetary crisis in Russia were evaluated in comparison with the consequences of the Russian rouble collapse and denomination in 1997-1998. The paper shows results of analyzing producers’ prices elasticity by the real effective exchange rate of the rouble. We propose measures aimed at the improvement of Russia's monetary policy to ensure the stability of the Russian currency. The presently observed rapid strengthening of the Russian rouble, which is similar in its speed to the previous devaluation, sets targets for the further research of the causes of the volatility amplification in the Russian currency market, as well as studying the consequences of sudden and multidirectional exchange rate fluctuations so that they can be minimized