How Vladimir Putin created a housing bubble
Prices have risen by 172% in Russia’s biggest cities over the past three years
Mortgages used to be a tough sell in Russia. Decades of Soviet propaganda, which denounced credit as an unbearable burden, had an effect. Even after the end of communism, Russians still referred to mortgages as “debt slavery”, preferring to save until they could buy their homes outright. Vladimir Putin, the country’s president, has spent two decades trying to convince his citizens to take a different view. In 2003, during his first term, he explained that mortgages might help solve “the acute problem of housing” facing Russians. His plea fell on deaf ears.
Explore more
This article appeared in the Finance & economics section of the print edition under the headline “War and prices”
Finance & economics July 27th 2024
- The rich world revolts against sky-high immigration
- Donald Trump wants a weaker dollar. What are his options?
- Revisiting the work of Donald Harris, father of Kamala
- How Vladimir Putin created a housing bubble
- Why is Xi Jinping building secret commodity stockpiles?
- Why investors are unwise to bet on elections
Discover more
Trump wastes no time in reigniting trade wars
Canada and Mexico look likely to suffer
How Trump, Starmer and Macron can avoid a debt crunch
With deficits soaring, their finance ministers will have to be smart
What Scott Bessent’s appointment means for the Trump administration
The president-elect’s nominee for treasury secretary faces a gruelling job
What Donald Trump and Bernie Sanders get wrong about credit cards
Forget interest rates. Rewards are the real problem
Computers unleashed economic growth. Will artificial intelligence?
Two years after ChatGPT-3.5 arrived, progress has been slower than expected
Should investors just give up on stocks outside America?
No, but it is getting a lot harder to keep the faith