The Economic Crisis in Russia and the Hedge Funds’ Activities: Retrospective Analysis of the Factors that Caused the Crisis

Abstract

The economic crisis of 1998 in Russia is still the object of active study by many scientists economists. Financial regulators represented by the Government of Russia, the Central Bank pursued a hasty, inconsistent and ill-conceived monetary policy in the country, sometimes developing into simple speculative operations in the securities market both domestically and abroad. The article describes the methods of statistical and deductive analysis in the study of the Russian financial crisis of 1998, studies the causes of its occurrence, the attempt to determine the mutual influence and relationship of events in the US securities markets and oil markets in developing countries in Southeast Asia with the economic crisis in Russia that influenced in general, to the destabilization of its economy and the weakening of the national currency is made. Therefore, in our opinion, it is necessary to synthesize the mutual influence and interconnection of the Russian crisis of 1998 with the fall in oil prices in Southeast Asian countries and the activities of US hedge companies in order to identify the true causes of the crisis in order to really present its systemic nature. If to pin hopes only on hedge companies as risk insurance entities, this can lead to an increase in the latter.