Distributing money among the population is neither populist nor conducive to inflation, according to Director of the Institute of Regional Problems Dmitry Zhuravlyov.
The economist noted that opponents to this new support measure base their argument on certain logic. They argue that people who received money will allegedly start buying dollars, which will result in a weaker ruble. However, it is not true because people will likely spend the money on medication, groceries and clothes.
Dmitry Zhuravlyov added, cited by Svobodnaya Pressa, that financial stimulus is helpful in emergency circumstances. If there are buyers with money it means the market economy is working; otherwise it won’t.
Zhuravlyov stressed that new one-time benefits to all pensioners may require significant funding. Giving away the money will result in fewer goods rather than less money.
Printing more money is not a problem but there is a risk of inflation. Inflation only happens when there is more money and fewer goods. With this in mind, inflation is not something to be concerned about.