Myths and Lessons of the August crisis

This article discusses the debate among authorities and academics about the cause of the Russian financial crisis that culminated in August of 1998. The authors attempt to determine if debt, currency, budget, investment or banking crises was the 'basic' crisis; what the most important cause may have been; whether the debt and monetary policy in the spring of 1998 lead to the devaluation of the ruble; why hyperinflation, followed by a drop in the ruble exchange rate and a crash of the economy did not occur as predicted; and reasons for the turn in production and economic growth, which was not predicted.