The Main Causes of Capital Outflow from Russia

Ksenia Yudaeva ()
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Ksenia Yudaeva: Sberbank Centre for Macroeconomic Research

Ekonomicheskaya Politika / Economic Policy, 2012, 21—32

Abstract: In the last 1,5—2 years Russia experienced massive capital outflow, which happened both during the times of excess liquidity and lack of liquidity in the banking sector. Our view is that this outflow can largely be explained by macroeconomic rather than institutional factor: differences in the costs of credit for the Russian companies on the domestic and international markets. Excess liquidity in the banking sector has originated because of financing budget deficit from Reserve fund. Such cheap money allowed Russian banks to provide cheap credit. Later on similar result was achieved as a reaction to the policy of Minfin and CBR to provide liquidity to the banking sector during the new wave of the European crisis in august 2011.

Keywords: capital flight; liquidity; Reserve Fund; the budget deficit (search for similar items in EconPapers)
Date: 2012
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