This podcast episode explores the history of the ruble, the currency of Russia, and the unique monetary system that developed under the Tsars. The ruble has long been regarded as more than just an economic unit, with its fall considered as the fall of the country's prestige. The monetary system in Russia was seen as a projection of the czars' power and aimed to elevate their authority while protecting the value of the ruble. This patriarchal monetary system has shaped the financial and monetary system in Russia in a different way than the West. However, the Central Bank of Russia is subservient to the Kremlin, compromising its independence. This tension between the state's budgetary needs and projecting an image of power creates dilemmas within the leadership. There are debates within the Kremlin about the next steps, with some favoring renewed capital controls and others seeking stronger government control over the central bank. The potential for greater control over the central bank in response to economic sanctions raises concerns about the impact on the Russian people.
