Quartz: The markets are punishing Russia much more swiftly than the diplomats

Quartz: The markets are punishing Russia much more swiftly than the diplomats. A wide range of Russian assets, stocks, bonds, and the ruble, plunged in value today. To shore up the ruble, which is plumbing record depths, Russia's central bank unexpectedly hiked rates (one-week rate: 5.5% to 7%), and the central-bank has been spending billions of dollars to stem the fall in the value of the ruble. The (economic) reality for Russia is not nearly as robust as the image projected by its belligerent rhetoric. Growth has lagged emerging-market rivals like China and India for some time. What's more, Russia only recently vanquished double-digit inflation. An extended fall in the value of the ruble could push inflation back up, further denting the country's economic prospects. These (market) attacks that cannot be repelled by troops and tanks, but the damage they cause is every bit as real. (VIEW LINK)

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