An Analysis of the Impact of the Balance of Payments' Capital Account on Macroeconomic Processes in Russian Federation

The present research deals with the effect capital flows have on Russia’s macroeconomic indicators. Numerous nations have recently completed the so-called liberalization of the capital and financial account, i.e. have lifted restrictions on capital flows. That is why looking into the impact capital flows have on an economy’s development has formed a universal subject of economic research. Because of this, we have evaluated the impact of capital flows in and out of RF over the period between 1999 and 2007 against the background of the gradual liberalization of the capital and financial account of Russia’s balance of payments on the country’s macroeconomic indicators.