The Economy of Ukraine: Before and After
Economics Explained
Building an Economy Off of Exploiting Natural Resources
By 1996 the inflation rate was over 500% and the government was forced to introduce a new currency which it pledged to keep stable in relation to the US dollar. By 2007 just eight years after the Russian financial crisis the country had eliminated absolute poverty amongst its citizens. Unfortunately the 2008 global financial crisis hit the developing country particularly hard. Its banks and financial institutions were not yet sophisticated enough to be directly impacted by the financial system that caused problems in America and Europe but it was in a way collateral damage. The bad thing about building an economy off of exploiting natural resources is that when demand for those resources drops so too does the economy regardless of how well managed anything else is.
