Non-monetary Trade and Differential Access to Credit in the Russian Transition

Vlad Ivanenko
2003 Social Science Research Network  
This paper places non-monetary trade (NMT), a persistent growth of which in Russia in 1992-8 economists have struggled to explain, within the framework of the credit channel of the monetary policy. It shows that producers resorted to NMT responding to increases in the cost and unavailability of external funds. The paper traces the origin of structural breaks in the NMT trend and its transitory fluctuations to major shifts in state policy that affected financial markets and temporary shocks in
more » ... mporary shocks in the latter. It concludes that there is significant evidence supporting the existence of the credit channel in the Russian transition. JEL: E6, G14, P2 . Konstantin Loukine of the Canadian International Development Agency (Ottawa) has provided useful feedback. Vera Ivanenko has verified the paper's consistency with English grammar. The remaining errors and omissions are the sole author's responsibility.
doi:10.2139/ssrn.380023 fatcat:z36uzwpjxzbghccjw3k2qfgsnu