Russia in 2015: a Supply-Side Recession

The paper contains comparative analysis of macro policies carried out on the eve and in the course of the three crises episodes (1998, 2008-2009, and 2014-2015).Efficiency of alternative policies pursued in these cases is indirectly characterized by collating sizes of adverse shocks, resources used by the government and the central bank, and economic performance (primarily output decline, unemployment, etc).A brief overview of key steps in the evolution of monetary and fiscal policies implemented over the last 20 years is suggested.The author is arguing that in the first two crisis episodes main efforts were aimed at maintaining macro stability despite changes in fundamental conditions.The priority of the new macroeconomic stance, on the contrary, is finding new equilibrium adequate to the new situation.The findings of the earlier comparative analysis are used to illustrate advantages of the new approach.