The Secret of Russian Economic Growth: Testing an Old Hypothesis with New Data

April 5, 2001
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THE SECRET OF RUSSIAN ECONOMIC GROWTH: TESTING AN OLD HYPOTHESIS WITH NEW DATA

by Michael S. Bernstam and Alvin Rabushka

Figure 1
Index of Gross Domestic Product (GDP) (1991=100) and the Ratio of M 2 to Receivables (Year-End), Russia, 19922000

Note: The difference between the scales of the two axes indicates the change in the velocity of consumer spending (money velocity).
Sources: Gross Domestic Product and enterprise receivables: Russian State Committee on Statistics; the monetary aggregate M2: Central Bank of Russia