>the ruble is crashing
Correct me if I'm wrong econfags, but the strength of the ruble against other currencies isn't necessarily a good heuristic for the general health of the Russian economy right? And if the ruble devalues w.r.t the dollar and euro, that doesn't necessarily imply that Russia is experiencing inflation? What does it actually mean for the ruble to depreciate? In my head I'm thinking it just means that markets have priced in the sanctions and the fact that there will be less value for rubles, and that's it
Correct me if I'm wrong econfags, but the strength of the ruble against other currencies isn't necessarily a good heuristic for the general health of the Russian economy right? And if the ruble devalues w.r.t the dollar and euro, that doesn't necessarily imply that Russia is experiencing inflation? What does it actually mean for the ruble to depreciate? In my head I'm thinking it just means that markets have priced in the sanctions and the fact that there will be less value for rubles, and that's it
*less demand
Which is basically inflation. The supply of rubles might not change but if you can’t buy as much with it the effect is the same.
@hannibal_ad_portas but that only applies to foreign currencies right? not their domestic economy
Follow
@augustus @hannibal_ad_portas If scarcity increases due to the lack of foreign trade, that decreases actual buying power locally.
@mandlebro @hannibal_ad_portas seems obvious enough, but also seems only tangentially related to the issue of currency depreciation. or that both of them, depreciation and scarcity of foreign goods are both second order effects from a reduction in foreign trade
