Putin's Fake Good News on the Economy

Russia had an increase in capital inflows, but that doesn't signal a recovery.

Things are looking up?

Photographer: Andrey Rudakov/Getty Images

President Vladimir Putin is eager for good news about the economy. So when he learned that Russia had its first capital inflow in five years in the quarter from July through September, he proudly shared the information at an investment forum in Moscow, saying "on the whole, the peak of the crisis has been reached." The inflow, though, is nothing to celebrate: It's a sign of a grim, reluctant adjustment to ugly circumstances.

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