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What is devaluation in simple terms and how does it affect the Russian economy?
Devaluation is the process of devaluation of the national currency, which each of us feels when prices rise and purchasing power falls. In this article, we will analyze why devaluation occurs, how it affects prices, business and everyday life of Russians,...
Why People Take Mortgages Despite High Rates?
Contrary to expectations, the Russian mortgage market is growing despite high interest rates. Why do Russians continue to take out mortgages even in the face of inflation and the risk of ruble devaluation? In this article, we examine the key reasons — from the desire to protect savings to government support. Find out how high rates affect the housing market and why real estate remains an attractive investment for many.
Why Russians Continue ...
Inflation: What It Is, Why It Is Dangerous, and How to Protect Your Money
... considered normal when the price increase is modest. However, a sharp rise in prices can complicate life for businesses and ordinary citizens. For example, in post-war Germany during the 1920s, prices rose multiple times a day, and money was almost entirely devalued.
Causes of Inflation Growth
The primary causes of inflation growth are usually attributed to the following factors:
Excess demand. When the aggregate demand from the population and businesses significantly exceeds the economy's capacity to produce ...
"I Fear the U.S. Budget Policy": Buffett on Inflation, Debt, and Bitcoin
Warren Buffett shared his concerns regarding U.S. budget policy and the devaluation of the dollar during the Berkshire Hathaway meeting. His comments surprisingly strengthened the case for Bitcoin as an anti-inflation asset. We delve into why Buffett's words could represent a turning point in investors' perception of cryptocurrencies....
Investing in Bonds from Sberbank of Russia
... currency's exchange rate. Profit can only be achieved if the ruble appreciates. If it continues to decline, coupon payments may only amount to 0.01% annually, implying that the sum does not increase. Concurrently, the investor may face losses due to devaluation.
Absence of Guarantees. There is no 100% assurance for the investor that they will ultimately realize a profit; this is out of their control.
Devaluation. Bonds are issued in rubles, meaning payouts can only be received in the national currency....