Visiting the liberals: Gref gave Glazyev the floor during a commercial break
Sberbank held a business breakfast today at the St. Petersburg International Economic Forum, to which liberal economists were invited. The only representative of the alternative point of view, Sergei Glazyev, was given the floor by presenter German Gref at the moment when there was an advertising break on the Rossiya 24 channel, which was broadcasting the event.
The audience did not see most of Glazyev’s speech, but judging by the context, he criticized the actions of the Central Bank of Russia, which artificially keeps inflation down by refusing to lend to the real sector of the economy.
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“If the state and business agree on promising areas of science, we will form investment programs together. Their business will not survive on its own; they need government support: not only tax breaks, but also targeted loans. In all countries, the state provides incentives for investment and helps with cheap loans. The state becomes the main investor when the economy declines,” this part of Glazyev’s speech was broadcast.
Gref could not help but object.
“The easing of monetary policy in our country leads to an increase in outflow. When a large cash flow falls on an ineffective management system, the utilization of this cash flow simply increases, but efficiency does not increase,” said the chairman of the board of Sberbank.
“If the state monitors the use of money through the state banking system, as experience shows, it is quite possible to ensure control. The main method of fighting inflation is reducing costs, scientific and technological progress and the introduction of new technologies,” Glazyev answered.
Gref decided to troll his opponent
“If you worked a little somewhere someday - in the banking system, the financial system - you would understand what it means to control cash flows, you would be more respectful of what the Central Bank has done. He pursues a tough policy. A 5% rate is a big price to pay for reducing inflation, but it is a price the economy must pay. When we go through this difficult period, in 2 years we will receive a return in the form of an increased investment fund,” Gref said.
Glazyev still has the last word
“The price for this policy was unproduced products worth 15 trillion rubles, minus 5 trillion rubles of investments. Economic growth can only be achieved by investing in new technologies, and not by compressing the money supply. We have seen an aging economy and a decline in its competitiveness. The imaginary stabilization can be destroyed by any wind blowing from the external environment,” the economist concluded.
Visiting the Liberals: Gref Gave Glazyev the Floor During a Commercial Break