Fiscal stimulus alone won’t revive Russia’s economy

The discussion about how to soften the fallout from the Ukraine crisis on the Russian economy has started to shift towards fiscal stimulus, with key ministers advocating looser fiscal policy earlier this week. But while fiscal stimulus could cushion the blow to the economy, it is unlikely to revive growth. After all, the slowdown in Russia over the past few years has been caused by much deeper seated problems on the supply side of the economy.