Medvedev considers short-term, but not critical dollar volatility possible

TASS Russian News Agency | Jan 16, 2021 at 7:25 AM

MOSCOW, January 16. /TASS/. Deputy Head of Russia's Security Council Dmitry Medvedev considers short-term volatility of the dollar possible against the background of events in the US after the elections, he wrote in his op-ed published by tass.com.

Medvedev noted that "George W. Bush's victory back in 2000 caused a significant though short-term volatility on stock markets". "It is equally possible after the current shock, which of course provides considerable grounds for concern," he added.

"But the long-term stability of the US dollar will be largely determined by the resilience of institutions for the protection of property rights, the demand for American goods and services in the global market, as well as the predictability and independence of the Federal Reserve System (FRS), which underpins the confidence in the US dollar. US dollar volatility will abruptly increase only if US manufacturers lose a considerable share of the world market or investors doubt the existing safeguards for the protection of assets, the relevance and soundness of the FRS's long-term policy," Medvedev believes.

Medvedev also drew attention to the fact that the approach of Biden and Trump to decisions on pressing domestic economic issues, which have a direct impact on the whole world, are very different. "Since this is impossible in the near future, it seems of much more interest to us what Joe Biden's economic policy will look like. And this is often shaped based on the thesis "just not the way Trump would have it." It's some sort of a tradition: the same way, the 45th president without hesitation reversed the 44th president Barack Obama's directives on all tracks," he wrote.