1998 Russian Financial Crisis

Causes of the Crisis

The 1998 Russian financial crisis, also called the ruble crisis or the Russian flu, began in Russia on 17 August 1998. It resulted in the Russian government and the.

The Russian Flu

In 1998 Russia experienced sovereign debt default a massive devaluation of the rouble and a banking crisis. The crisis spread to other emerging markets and caused a sharp decline in global stock markets.

Russia's Response to the Crisis

The Russian government responded to the crisis by raising interest rates and imposing capital controls. It also sought financial assistance from the International Monetary Fund (IMF).

The Long-Term Impact of the Crisis

The 1998 Russian financial crisis had a significant impact on the Russian economy. It led to a sharp decline in output and a sharp increase in unemployment. It also damaged the Russian government's credibility and made it more difficult for Russia to attract foreign investment.