Putin expects extra measures stimulating economy from government

(Interfax – MOSCOW, June 11, 2013) Russian President Vladimir Putin says he expects the government to take extra measures to stimulate the national economy in the near future, but Russia is not going to start a currency emission process.

“I hope the Russian government, after our numerous meetings, will propose extra steps to stimulate economic development,” Putin said while taking questions from Russia Today employees on Tuesday.

“The Russian economy is quite healthy, and it is not burdened by external debt comparable to what Europe has. Our budget is deficit-free,” he said.

“Our situations are different. Surely, we can use oil and gas revenues. But I would like to point out that we don’t have a printing machine for reserve currencies, while they do. And the situation is not about us having oil and gas revenues and hence reserves, but about limiting our expenditures,” he said.

“The (Russian) Central Bank is being criticized for high interest rates,” Putin said. “But the Central Bank is keeping these high rates, among other things, to prevent financial bubbles from being blown. You can dispense cheap loans and prompt manufacturers to produce their products on these loans, but then they won’t have enough demand on the market. Here is how you have a bubble,” Putin said.

“Finding the golden mean between milder monetary and financing policy and tougher control over expenditures, which should produce the best effect, is economic policy bordering on art,” Putin said. “I am not sure that we have found this golden mean and are working efficiently in every respect. I hope for proposals from the government,” he said.

Putin determined as a priority the maintenance of the rate at which the people’s real incomes grow.

“In general, I share the position of those of our European partners who believe the crisis should be overcome through consolidating the budgets and improving order and discipline in the economy,” Putin said. “Of course, there are limits to everything, but surely it is impossible to heap everything on the people’s shoulders,” he said.