Cabinet measures to curb inflation have positive effect on economy - Putin
Russian President recalled that the government had introduced increased export duties on the products of the metallurgical industry.
The Russian government has successfully applied some restrictive measures in the economy, which prevented an increase in prices, President Vladimir Putin said on Friday at the meeting with Cemix plant workers.
"Can we and should we take any restrictive measures within the country? We can and should, and this is exactly what we are doing. <...> The government has outlined a number of systemic measures to curb prices in the country. In general, this is an economic measure, there is nothing too much administrative about it. I think that this should generally have a positive effect on the economy. In my opinion, this already has a positive effect on our economy to a certain extent," Putin said.
He recalled that prices for the products of the metallurgical industry have grown in the world markets. "Since we have an open economy and our metal producers, of course, are trying to gain the maximum profit from the situation that has developed in the world markets, they supply their products there. This leads to a shortage of these products in the domestic market and, accordingly, to the rise in prices," Putin explained.
The President recalled that the government had introduced increased export duties on the products of the metallurgical industry.
Putin believes that inflation in the global economy as a whole has objective and subjective reasons, and "subjective ones, rather, grow out of objective ones."
"The first objective reason is associated with the pandemic - not in our country, but in the world as a whole. After the reduction of production, and a rather long period during which it was in a difficult phase in many countries, [authorities of those states] began to apply various measures to stimulate economic growth. They came up with nothing better than printing money and throwing it into the economy," the President explained.
According to him, in developed economies, the recovery is going faster than in developing ones, due to the fact that central banks lend their production.
"In the States, in my opinion, it [lending] is up to 15%. This leads to inflation," Putin said. He noted that he was talking about the United States not because he wanted "to taunt it," but because "it is one of the largest economies in the world, and everything that happens there affects the global economy as a whole."
"Their target was at 2%, inflation is now moving to 5.5-6%. This is a lot for an economy like the United States," the Russian leader added.
He stressed that almost the same thing is happening in European countries and the general rise in prices also affects the "response in individual industries," the President summed up.
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The Russian government has successfully applied some restrictive measures in the economy, which prevented an increase in prices, President Vladimir Putin said on Friday at the meeting with Cemix plant workers.
"Can we and should we take any restrictive measures within the country? We can and should, and this is exactly what we are doing. <...> The government has outlined a number of systemic measures to curb prices in the country. In general, this is an economic measure, there is nothing too much administrative about it. I think that this should generally have a positive effect on the economy. In my opinion, this already has a positive effect on our economy to a certain extent," Putin said.
He recalled that prices for the products of the metallurgical industry have grown in the world markets. "Since we have an open economy and our metal producers, of course, are trying to gain the maximum profit from the situation that has developed in the world markets, they supply their products there. This leads to a shortage of these products in the domestic market and, accordingly, to the rise in prices," Putin explained.
The President recalled that the government had introduced increased export duties on the products of the metallurgical industry.
Putin believes that inflation in the global economy as a whole has objective and subjective reasons, and "subjective ones, rather, grow out of objective ones."
"The first objective reason is associated with the pandemic - not in our country, but in the world as a whole. After the reduction of production, and a rather long period during which it was in a difficult phase in many countries, [authorities of those states] began to apply various measures to stimulate economic growth. They came up with nothing better than printing money and throwing it into the economy," the President explained.
According to him, in developed economies, the recovery is going faster than in developing ones, due to the fact that central banks lend their production.
"In the States, in my opinion, it [lending] is up to 15%. This leads to inflation," Putin said. He noted that he was talking about the United States not because he wanted "to taunt it," but because "it is one of the largest economies in the world, and everything that happens there affects the global economy as a whole."
"Their target was at 2%, inflation is now moving to 5.5-6%. This is a lot for an economy like the United States," the Russian leader added.
He stressed that almost the same thing is happening in European countries and the general rise in prices also affects the "response in individual industries," the President summed up.
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