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. Last Updated: 07/27/2016

Mark of Civilization

Judging from the relationships between central banks and governments of the world's civilized nations, the more independent a country's central bank leadership is, the more civilized the nation is. If this is the case, then one can say with all confidence that Russia is one of the most civilized nations on earth.

Alexander Khandruyev -- appearing at [a Nov. 30] government meeting to discuss monetary and credit policies for 1996 -- exuded such confidence that at times it was unclear who was in charge: the unusually quiet prime minister or the first deputy chairman of the Central Bank of Russia. ...

[Prime Minister] Viktor Chernomyrdin, questioning the bank's proposals, said he could not find any Central Bank efforts in the document to encourage investment in the economy. Khandruyev's answer was not well received by the prime minister nor his government: "The Bank of Russia is not a government office for handing out cheap cash." ...

Minister [of Agriculture Alexander Nazarchuk] tried to raise the issue of credits for his field. Khandruyev answered: "Credits to the agriculture sector have been the single worst mistake made by monetary officials." Kommersant Daily, Dec. 1