Advisor to the President of the Russian Federation Sergey Glazyev criticized the rigid policy of the Central Bank, which does not allow, in his opinion, to achieve lower inflation and a rise in investment activity. The Kremlin hastened to assure that do not share the point of view of an economist.

That the Russian macroeconomic system similar to the patient with myocardial infarction, Glazyev said at the forum “the Trap “new normality” in the Financial University of Moscow, writes RBC.

Commenting on the theme of the forum, whose name is used to refer to low growth in the post-crisis period, the former Minister of foreign economic relations of Russia said that he sees the “trap” is nothing new. “We are in this trap are from 1992, we began to implement the doctrine of market capitalism, widely known as the “doctrine of the Washington consensus,” – he explained.

Glazyev reminded that the Central Bank for two years conducts a tight monetary policy and withdrew from the economy about 5 trillion rubles. The reduction of the money supply expected in the future. In this case, he said, to achieve lower inflation and a rise in investment activity will be impossible.

The whole world, said Advisor to the President in his speech, goes the other way by the policy of quantitative easing, including negative interest rates. “It’s not because they are stupid and we are smart. The whole thing Vice versa. They are not dogma, and the dogma we. They are realists, they understand that the economy needs new money, new loans in order to increase the production of a new technological plan” – S. Glazyev said, adding that these countries understand the need to reduce risk and help the business of innovation. Thus, entrepreneurs do not have problems with credits.

In Russia, however, insist that a strict policy will help to reduce inflation, however, this prevents a free exchange rate – the volatility of the national currency is not in any country of the world, quoted speech Glazyev RBC.

Russia, in the opinion of the adviser, will remain in the “trap”, because the Central Bank is going to go to the Deposit auctions and bid to bring him the key. “What does that mean? The Central Bank instead of giving loans, is now going to raise money and freeze them in their Deposit accounts,” – he explained. That is, “to impose a kind of penalty for lending the greater part of the industries, where profitability does not allow you to borrow at a rate equal to the key,” concluded the eye. And commercial banks will be able “to do nothing” and consistently receive “a good percentage”, giving money to the Central Bank.

In the result, the Russian regulator “will be the only one in the world who, instead of issuing money into the economy, will pick up the money, encouraging banks not to invest in the real sector”. To do this, the Central Bank will be at the expense of the budget, since its profit comes into the coffers, and with this approach it will be close to zero and even turn into a loss, warned Glazyev.

The presidential adviser said the Finance Minister Anton Siluanov. He pointed out that negative interest rates apply where there is deflation, whereas in Russia the rise in prices. Second, said the head of the Ministry of Finance, targeted lending, which says the eye, contrary to the market approach. In addition, he reminded that the Ministry of Finance “now gives liquidity, because we spend 2 trillion rubles per year from the Reserve Fund and this is the same issue, in fact”.

Later on Tuesday, November 22, discussion at the Financial University said the press Secretary of the President Dmitry Peskov. “Glazyev expressed his personal point of view. We do not share,” – said the representative of the Kremlin to journalists.

Presidential adviser Glazyev criticized the work of the Central Bank and diagnosed the Russian economy 22.11.2016

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