'Policy trilemma': US think-tank's dire warning for Putin, Russia
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Russia's economy may only maintain its current strength for another 18 months before beginning to falter, according to insights from the Carnegie Endowment for International Peace. The think tank highlighted Russia's robust economic performance despite increased military expenditures and extensive Western trade sanctions related to its ongoing conflict in Ukraine. However, the current economic stability is not sustainable indefinitely, and the current arrangement is likely to come apart within eighteen months due to growing imbalances and possible social problems. Russia is facing a policy 'trilemma,' trying to fund military operations, maintain living standards, and keep the economy stable simultaneously. The Kremlin's record spending on military efforts this year could exacerbate these challenges, as defense expenditure is generally seen as economically unproductive. Living conditions in Russia are at risk of deteriorating, with inflation spiking and the central bank hiking interest rates to control inflation. Economists have also raised concerns about the long-term impacts of a shrinking workforce, declining productivity, and Russia's growing isolation from the global economy. Temporary economic fixes might lead to significant political and economic challenges for the Kremlin.

#Russia #Economy #Policy #Putin #CarnegieEndowment

https://timesofindia.indiatimes.com/world/us/policy-trilemma-us-think-tanks-dire-warning-for-putin-russia/articleshow/109532244.cms