Russians commence removing funds from their savings accounts, according to an economist's statements

Russia is currently experiencing a renewed increase in inflation, leading to concerns among economists and the public. According to Valentin Katasonov, a noted Russian economist and former advisor to the country's Central Bank, this could potentially result in mass withdrawals of bank deposits by citizens.

During the 1990s, Russia experienced a period of hyperinflation, defined as a sudden and uncontrolled rise in prices exceeding 50% per year. This hyperinflation was relatively short-lived but was extremely painful for the population, with inflation reaching several thousand percent per year. As a result, Russians developed an instinct to quickly devalue money to preserve their savings.

In the past, citizens rushed to withdraw their savings from deposits due to a loss of trust in the banking system, inflation fears, or an impending financial crisis. According to Katasonov, if similar economic conditions recur, citizens would start massively cashing out their money from deposits.

The 1990s hyperinflation had extremely negative consequences for millions of ordinary citizens. It led to a desire among Russians to quickly devalue money and preserve their savings, a desire that Katasonov believes could resurface if unfavorable economic conditions arise.

If Russia were to experience hyperinflation once again, citizens would likely buy goods and services before their savings lose their purchasing power. This could lead to a surge in demand and further exacerbate the inflationary pressures.

The increase in inflation follows a period of sustained decline, and Katasonov has drawn attention to this issue. He believes that the current economic conditions could potentially lead to another bout of hyperinflation, and that Russians are ready to start massively withdrawing money from their bank deposits if such conditions arise.

This news serves as a reminder of the importance of maintaining economic stability and trust in the banking system. As the situation unfolds, it will be crucial for the Russian authorities to take steps to address inflation and restore confidence in the economy.