Russian Finance Minister believes in low inflation

The Russian finance minister feels blame for the crisis of 1998. This he said in an interview today the newspaper Vedomosti. "crisis of 1998 was firmly remembered. All these 10 years I live with guilt for him, "-" Kudrin said. "The financial authorities and the government, not all the research, did not carry out all necessary measures. Hoping that will carry. Then, in 1998, I saw the depth of problems: how inflation from 11% to 84% jerked. Standard of living has fallen for two years at 26% drop in industry rose by 5.2% per year. I, as a naturalist, he saw the depth of the effect of external shocks, draw conclusions and was aware that a similar situation, we must be prepared ", - thinks the vice premier. The minister is convinced that the government can significantly reduce the rate of inflation in the country. In his words and low inflation - the most important factor of economic modernization. "If prices rise less than 5% per year over 10 years, the credibility of such a policy the government is growing incredibly. That's low inflation creates a long-term money. Other factors are long-term money is important, but are subordinate . The scale of opportunities is increasing so that we can implement any modernization, high-tech projects in Russia, based on their own talent managers to reduce their costs and increase productivity "- convinced Kudrin. According to him, in 2012-2013 inflation may drop to 3 %. In an interview with reporters Kudrin said that as he had expected, the Reserve Fund for the worse for wear the next year. They have enough for three years, he recalled. Kudrin believes that the small reserve in the form of the National Welfare Fund (NWF) is not worth spending, because it is designed to "level the pits in the income of the Pension Fund, which will soon be formed because of the demographic problem." He pointed out that since 2011 no benefits in the form of "financial cushions" will not. Additionally, you may fall in oil prices, warns Kudrin said. He believes that such a global crisis in history simply was not, "as such a scale of monetary and fiscal measures to support." "If the average level of state debt - 60% of GDP, in Russia - 30%. While in other countries, the fiscal deficit should be 3%, then we have - 1% or even zero. And it must speak with an absolutely secure and stable oil price - around $ 50-60 per barrel, no more. If we hold a large deficit, the risks of Russia will be multiplied by this large deficit. Big deficit - the same costs to support the economy - rather hit economic growth than will benefit. And the hits on investments and interest rates, credit inflation ", - said the head of the Ministry of Finance.