Economist Dr. Mikhail Melnik: 'Best Course Of Action For Russia Might Be Allow Ruble To Depreciate'

Speaking to Benzinga, Southern Polytechnic State University Economist Dr. Mikhail Melnik said that a rise in interest rates for Russia is counterproductive.

“The best course of action may very well be to allow the currency to depreciate and focus all efforts on the real sector,” he said.

Rather than supporting the ruble, Melnik said the country should use some of its foreign reserves to fund and expand domestic social spending programs.