(WASHINGTON POST) MOSCOW — Russia appeared headed Tuesday into a full-fledged currency crisis after the central bank imposed a massive, middle-of-the-night interest rate hike but failed to halt the plummet of the ruble.
The tactics have revived memories of Russia’s 1998 financial meltdown when the nation defaulted on debts and a generation’s savings was wiped out because of hyperinflation.
Russia has more crisis-fighting resources today, but the central bank decision also carried perilous risks for the broader economy.
