The Future Is History: How Totalitarianism Reclaimed Russia

by Masha Gessen

In the first few weeks they learned that the situation was even more dire than they had imagined. The country had no currency or gold reserves—most had been spent and the rest appeared to have been plundered. Because consumer goods had been in short supply for years, and also because prices for all goods were set by the government without regard for cost or demand, people had accumulated a lot of unspent rubles—there was no telling exactly how many. Between that and the inability of the Russian government to control the supply of rubles in the economy—because the neighbors could print them too—there was little to no hope of being able to stem inflation if consumer goods became available and price controls were lifted. But the only way to make consumer goods available seemed to be to lift price controls. “It became clear that the situation was mercilessly dictating only one option: the most conflict-ridden and riskiest scenario of starting reform,” wrote Gaidar.