The authors analyze the links between Russia's disappointing growth performance in the second half of the 1990s, its costly and unsuccessful stabilization, the macroeconomic meltdown of 1998, and the spectacular rise of non-payments. Non-payments flourished in an environment of fundamental...

The tightening of fiscal and credit policy continued in the first half of 1995. However, the situation in 1995 differed significantly from what it was in prior years. First, the government has learned the lesson it was taught in the fall of 1994 and it truly placed its principal emphasis on the...