Comparative Economic Studies         Past Issues

The IMF and the Ruble Zone
Anders Aslund, Carnegie Endowment for International Peace

    When the Soviet Union broke up, then of the fifteen successor states were hit by hyperinflation.  Hyperinflation is closely connected with the persistence of the common currency are in the CIS till 1993.  Arguably, the preservation of the ruble zone was the worst single mistake in the post-communist transition in terms of its costs, and the question is what role the IMF played in this mistake.  Four issues are discussed.  The first one is possible alternative monetary regimes.  The second issue is the politics of the ruble zone.  The third is the bankers' meeting in Tashkent in May 1992, and finally when the IMF publicaly came out against the ruble zone. 

JEL Classification Numbers:  E52, F33, F42, P24

Keywords:  Monetary policy, ruble area, national currencies