Are the US and Russian Economies Related? East and West Domination and Competition in the Economy

English

Abstract

This study investigates the relationship between the US macro economy and real economic growth in Russia. The sample data used is from 2000 to 2021. The dependent variable is the level of GDP in Russia and the independent variables are Interest Rates, Inflation, and the United States Money Supply (M2). Data is taken from various sources World Bank. This study uses the Vector Auto-Regressive (VAR) analysis method to look at the individual behavior of each country studied and uses time-series data from 2000 to 2016 for analysis of the United States' quantitative easing policies on real output in Russia. The result of this study is The relationship between interest rates, inflation, and the amount of money in the United States to the GDP variable in Russia is significant in the long run. However, in the short term, the relationship is unstable. This shows that there is an influence between the US economy on Russia where the two countries both have economic dominance in the world but the surprising thing is that the two economies influence each other.