The Russian Crisis Explained in Two Minutes

The video discusses the collapse of the Russian ruble, primarily due to falling oil prices and Western sanctions following Russia's invasion of Crimea. The Central Bank of Russia attempted to stabilize the ruble by using foreign reserves and hiking interest rates, but these measures had limited success. The ruble's decline is expected to worsen inflation and deepen the recession. The video suggests that easing tensions in Ukraine could help, but this is unlikely due to domestic political factors.

What are the two main reasons for the collapse of the Russian ruble?

• Decreased military spending and foreign aid

• Rising domestic production and exports

• Increased foreign investments and tourism

• Falling oil prices and international sanctions

How did the Russian central bank initially attempt to support the ruble?

• By reducing interest rates

• By using foreign reserves to buy rubles

• By increasing government spending

• By printing more rubles

What was the immediate effect of the interest rate hike by the Russian central bank?

• It had no effect on the ruble's value

• It worked briefly before the ruble continued to fall

• It caused the ruble to appreciate significantly

• It stabilized the ruble for a long period

What is one potential consequence of the ruble's collapse mentioned in the video?

• Improved economic growth

• Increased foreign investment

• Decreased inflation

• Worsening inflation

What is one reason why easing sanctions on Russia seems unlikely?

• Putin's actions in Ukraine are unpopular in Russia

• The West has no interest in lifting sanctions

• Russia has already met all international demands

• Putin's actions in Ukraine are popular in Russia