Why did russia launch the «printing press»?
After the start of Russia’s full-scale invasion of Ukraine, the Russian authorities launched a large-scale money issuance. Using the “printing press,” the Kremlin is attempting to cover the budget deficit and finance state corporations. Economists have calculated that over three years, the Central Bank has “printed” 8.2 trillion rubles (more than $90 billion USD).
▫️ As a result, this may lead to further inflation growth, ruble depreciation, and economic weakening. In the short term, the issuance allows the Kremlin to maintain the appearance of stability, but in the long run, it increases the risk of a deep financial crisis.
The activation of the “printing press” in the late USSR was one of the key reasons for the economic collapse of the Soviet system. Therefore, this tactic is particularly dangerous for Russia during wartime, as its economy is isolated, has no growth prospects, and the budget is being drained by enormous military expenditures.
