ECO 1102 Lecture Notes - Lecture 1: Infrastructure, Macroeconomics

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: Octavian Strimbu

Document Summary

Over the past few years, the russian economy was heading downwards, and in. 2014 it saw its currency, the ruble, experience a sharp and drastic depreciation. Before examining this depreciation, i will first discuss the fundamentals of macroeconomics in open economies as the russian economy fits this description. Next, i will propose two theoretical methods that the central bank of russia could use to stop this economic crisis and help the russian ruble appreciate once again. One of the most important, yet basic aspects of this economic puzzle begins with understanding russia"s economy as a large and open entity, capable of capital mobility. In sum, its full access to the entire world"s financial market, gives russia"s economy the ability to freely interact with other countries and their economies, thus allowing it to have major impacts on the overall global economy. Many international transactions are constantly occurring, segueing into one of the most important international prices: nominal exchange rate.