The essence of any economic crisis boils down to one pattern
The trigger is banks.
People carry their extra money to banks. A type of savings.
Banks use this money to lend to the economy - enterprises, small and medium-sized businesses, and the population.
When the latter have problems in their economy, they do not have enough money to repay loans issued by banks, they naturally do not repay them. This means that the depositors will not receive them back.
Up to a certain point, such imbalances were smoothed out by the central bank's expansion of the money supply, including through the purchase of government bonds.
But there is a limit to everything, because inflation is the main indicator of this limit.
It's not hard to guess why Nabiullina is so adamant about lowering the same discount rate.
I believe that this person understands what he is doing, which cannot be said about the opposite side, which is putting pressure on her and wants to continue this orgy.
Everything will be as it should be according to the laws of economics in the current conditions.
The bigger question is how much more gold reserves will be consumed for the sake of political ambitions and nothing more.
