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OECD Economic Surveys: Russian Federation 2006

image of OECD Economic Surveys: Russian Federation 2006

This 2006 edition of OECD's periodic review of the Russian economy finds an economy enjoying robust growth, but requiring strengthening of the macroeconomic framework to sustain that growth.  Public administration urgently needs reform and raising innovation potential could do much to sustain rapid growth. The healthcare system suffers from fundamental imbalances and its reform could arrest the decline in health now being experienced.  This survey offers a series of recommendations for addressing these issues.

English Russian, French

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Ensuring sound macroeconomic management

This chapter addresses the challenge that the adjustment to sustained high oil prices poses for macroeconomic management. It first examines the impact of rising terms of trade on the domestic economy, particularly with respect to exchange-rate appreciation, competitiveness and inflation. It then considers the role of monetary and fiscal policies in ensuring a smooth adjustment to the higher terms of trade. The chapter argues that fiscal policy should be the primary instrument for tackling this challenge. It therefore focuses on the potential role of a fiscal rule in insulating the economy and the budget from commodity-price fluctuations, and on the management of windfall oil and gas revenues accumulated in the fiscal Stabilisation Fund.

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