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вторник, 18 августа 2015 г.

About inflation, indexing and colonial rule

Indexing in Russian: pensions grow slower inflation
Indexation of pensions by the actual inflation of recent years may lead to an increase in the budget deficit leads TASS words of the Minister of Finance of Russia Anton Siluanova.It is significant that in this country for some time there is a "two-inflation": the official, according to which the indexation and the so-called actual, real reflecting higher prices for food and essential services.

Actually, the actual inflation for the previous reporting period amounted to about six percent.According to the Minister, to use such indexing instead of the projected 4-5%, you will have to enter any equity payments (that is, in fact, print the necessary amount of money), which will lead to a jump in inflation or spend reserves.In particular, the budget deficit 2015-2017 years already will be covered by the reserve fund and an additional item of expenditure will accelerate the reduction of the financial airbags.Replenishing the Reserve Fund provided after 2018.And everything seems to be right when he says the Minister of Finance, but it would be interesting to hear his arguments in an environment where his own monthly allowance will be equal to the national average pension without the possibility to take advantage of savings and loans.Source: rueconomics.ru 

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