Part 5/8:
One of Beut's more provocative assertions involves the interpretation of interest rates in Russia. While nominal rates may be reported around 21% to 30%, Beut contends that the "true" interest rate is effectively infinity. This hyperbolic stance reflects the real fear and hesitance of investors to hold Rubles, given the possibility of total devaluation.
He distinguishes between bank rates, natural rates, and the intertemporal price of waiting, introducing a nuanced perspective on what constitutes a relevant interest rate in the context of economic health and currency stability. Such a viewpoint delineates a fundamental mismatch between perceived rates and the actual climate of trust and investor sentiment around the Ruble.