Tasks with conflicting conditions in terms of negative stabilization: the Dutch Disease and the Middle Income Trap.

Abstract

Russian economy has entered a depression by the end of 2013. This was the result of a combination of fundamental (middle-income trap) and market factors (depreciation of oil price and international sanctions) enforced by Dutch Disease. The economy found itself in a state of negative stabilization arising after a prolonged depression and leading to a stable equilibrium with a low state of indicators. Taking into account that current global economic trends require the new industrialization Russian economy has faced a number of tasks with conflicting conditions, such as changes in interest rates and changes in taxation, which do not contradict the preservation of budget stability on the one hand and the stimulation of growth on the other.