Economists are divided on whether Russia’s economic difficulties will make its war effort unsustainable. Some, like Anders Aslund and Anders Olofsgård, believe that the country‘s macroeconomic failures will become a critical factor next year, making it increasingly expensive to finance the war.
Others, such as Mikhail Milov and Viktor Shapinov, agree that Russia is experiencing economic difficulties but are more cautious in their assessment. They note that while high interest rates are not helping the economy, they do not necessarily mean that the war effort will become unsustainable.
Some economists, like Natalia Pavytska and Valery Aleksashenko, argue that Russia’s defense sector receives direct funding from the budget and is unlikely to be affected by high interest rates. They believe that the government will find ways to fund the war, even if it means cutting other expenditures or printing more money.
Overall, while there is agreement that Russia’s economy is facing challenges, there is less consensus on whether these difficulties will ultimately affect its ability to wage war.
Key points:
* Economists are divided on whether Russia’s economic difficulties will make its war effort unsustainable.
* Some believe that the country’s macroeconomic failures will become a critical factor next year, making it increasingly expensive to finance the war.
* Others agree that Russia is experiencing economic difficulties but are more cautious in their assessment.
* The defense sector receives direct funding from the budget and is unlikely to be affected by high interest rates.
* Some economists believe that Russia’s government will find ways to fund the war, even if it means cutting other expenditures or printing more money.