Mr. Gref pointed out that the influence of large sums on the economy was always a double-edged sword.

Sunday, February 5, 2023

Sign-In | Sign-Up | Contact Us | Bookmark

Russia's minister of trade and economic development, German Gref, believes that the replacement of benefits in-kind with cash payments will have not a critical effect on inflation. The minister said that the cash payments would provoke inflation, but the total of less than 100 billion rubles ($1=28.16 rubles) would not have a critical effect. Mr. Gref pointed out that the influence of large sums on the economy was always a double-edged sword. "Increasing pensions is the correct thing to do socially, as it increases consumption, rather than savings, and stimulates demand and economic activity," he said. However, it also brought increased inflation with it. Mr. Gref believes that the economic situation will depend on the monetary authorities' steps to sterilize this money. In his opinion, the most important point to remember is that the situation will remain stable if spending is kept within limits. Mr. Gref believes that the benefit reform is correct and told journalists on Thursday that it had to be completed. With account for all the measures undertaken, he suggested that this could be done to the advantage of the population and without any social losses. Mr. Gref said that a reform on this scale would be painful for any country and that it was being implemented using the mildest possible methods. The minister also stated that major resources were being used to reduce the impact to the minimum. "There are problems that could have been thought through better," the minister said. "It would have been better to adopt the measures that have now been adopted to ease the situation in December." Mr. Gref added that only practice would show the efficacy of the measures.

Bookmark Mr. Gref pointed out that the influence of large sums on the economy was always a double-edged sword.