OIL PRICE DROP AND MACROECONOMICS OF RUSSIA IN 2014: A HISTORICAL EXPERIENCE

Since early 2014, the dropping of oil prices has become a concern for oil exporting countries. This is especially true in emerging and developing ones such as Russia, in which its government budget has been tied to the oil revenues. By decreasing this revenue, these kinds of countries are facing a crucial challenge in their economic mechanism. Investigating the historical oil shocks experiences can present the background of structural economics' situation against any unpredictable shock. The aim of this paper is to investigate the existence of macroeconomic stability in Russia against oil price volatility. We will check it through historic (1973-2011) and an empirical view (1995-2012).