The United States, with a budget deficit of 15% of GDP for two years in a row, went too far with the volume of stimulus to the economy during the pandemic, and this led to a global wave of inflation. This opinion was expressed by the aide to the President of Russia Maxim Oreshkin. The Russian economy, in his opinion, was able to restore the economy through preferential mortgages, payments to citizens and businesses, and understanding of the structure of demand by the authorities.
“The response of macroeconomic policy to the crisis must be commensurate with the scale of economic problems. If you’re in the deepest recession since World War II, then the answers should be the same size. And here, I believe, Russia has found the optimal volume and size of the stimulus and its structure, which made it possible to exit and, in fact, restore the economy in a little more than a year. But, for example, the United States, which has a budget deficit of 15% of GDP for two years in a row … The United States, most likely, has gone too far with the size of the stimulus, which, of course, is a global wave of inflation, “said Mr. Oreshkin during the plenary session Moscow Financial Forum.
The presidential aide believes that in such crises, monetary policy cannot have a quick effect on aggregate demand. “And therefore, the active involvement of budgetary incentives both through the support of lending and through direct payments to citizens, for example, is what made it possible to achieve maximum effects during this crisis,” he explained.
Maxim Oreshkin called “the main things” that “pulled out the Russian economy.” “The first is a program for preferential mortgages, and the second is direct payments to citizens and businesses,” he said. The third factor he considers is the understanding of changes in the structure of demand at the stage of overcoming the crisis.
Note that in August 235 thousand jobs were added in the United States – this is the lowest figure in the last seven months. In July this year, the US economy received 1.1 million jobs, and experts predicted that 750 thousand jobs will be added in August.
Why the Central Bank suggests not to be particularly afraid of the global surge in inflation – in the material of “Kommersant” “A weak dollar will not spoil the furrow.”
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