THE NEW RUSSIA - PROBLEMS AND FUTURE-PROS PECTS

One of the main issues in the world economy is the outlook for the Rus sian economic developments. This article deals with the crash of the S oviet economy, the economic problems facing Russia at the moment and f uture prospects for the Russian economy. Both macroeconomic and microe conomic issues are discussed. According to the author the most crucial measures are to fight inflation and inelasticities on the supply side . How well political and institutional reforms are carried out is also of great importance. In spite of the risk that the country may collap se into criminal oligarchy, the Russian economy has huge potentials an d positive signs can be observed. Also, from Finland's point of view t he future appears bright as e.g. trade with Russia has significantly i ncreased after coming to a complete standstill.