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Abstract

In the fall semester of 2014/2015 Alexandra, a foreign exchange student from Russia, was studying economics at the European University Viadrina (Germany). Alexandra was very concerned about what was going on in her home country at the time. The economy was not doing so well because of a decline in the oil price as well as the sanctions of the western hemisphere due to the Ukraine conflict. The current actions of the Russian central bank caught her attention. She wanted to understand why the central bank raised the key interest rate so much and what the consequences could be.
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Abstract

In the fall semester of 2014/2015 Alexandra, a foreign exchange student from Russia, was studying economics at the European University Viadrina (Germany). Alexandra was very concerned about what was going on in her home country at the time. The economy was not doing so well because of a decline in the oil price as well as the sanctions of the western hemisphere due to the Ukraine conflict. The current actions of the Russian central bank caught her attention. She wanted to understand why the central bank raised the key interest rate so much and what the consequences could be.

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