Putin beordrar styrkor att gå in i Ukraina - INVASION NU (2022-02-24)

American advisors and global creditors, especially the International Monetary Fund, played a notable role advocating for shock therapy. But some influential shock therapists, like the economist Jeffrey Sachs, then at Harvard, believed such a radical program needed support. He proposed the United States and multilateral development agencies help Russian reformers succeed with a $30 billion aid package, akin to what America had provided Europe after WWII with the Marshall Plan. Sachs also called for the cancellation of Russia's debts. But these ideas were rejected by American leaders.

President Yeltsin delivered the first big shock to the Russian economy when he lifted price controls in December 1991. As the Soviet economy collapsed, however, the policy ended up unleashing hyperinflation. By 1994, consumer prices in Russia would skyrocket to almost 2000 times what they had been in 1990. That candy bar that had cost $1 now cost $2000. Hyperinflation devastated ordinary Russians.