noted that the inflation problem is also having a detrimental impact on Russia's current status in world trade. With the drastic increase in prices, Russian goods have become less desirable in the international market. The resultant drop in exports has compounded the already existing problem of Russia's balance of payment deficit, as well as reducing the exchange rate for the Russian ruble. These are both predictable outcomes of inflation, as cited by Czinkota, Rivoli and Ronkainen.
As indicated in the Business Week article by Brady, Bremner, McNamee and Galuszka, the current plan for Western aid to the former Soviet republics can be very helpful in overcoming some of these economic problems. A total of $24 billion has been agreed upon. This should be enough to provide for substantial development throughout the new Commonwealth of Independent States. The agreement on this amount represents an important step forward in terms of Western interest in the economic reforms of the region. As recently as January, 1992, pessimism was being expresse
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