Part 4/8:
At the heart of the Ruble’s decline is a lack of capital formation. Beut explains that a thriving economy relies on private capital and entrepreneurial ventures, which are currently sparse in Russia due to political and economic instability. This absence creates an environment where capital does not accumulate, further exacerbating the Ruble's decline.
Utilizing the Austrian theory of capital formation, Beut describes the importance of entrepreneurs feeling secure enough to invest in long-term projects. In Russia, this sense of security is severely lacking, stunting capital lengthening, which is vital for economic growth.