The thesis offers a detailed economic and econometric analysis of some important issues underlying the macroeconomic policies carried out by the Russion Federation between 1992 and 1995. The thesis is composed of two separate chapters, written to be read independently in an essay form

A first chapter presents a simple model of money demand in Russia between 1992 and 1995, focusing on two important aspects, i.e. currency substitution and financial liberalization

A second chapter conducts a detailed analysis of the mechanisms behind inflation, output performance, and exchange rate issues in Russia between 1992 and 1995, in paying particular attention to the Soviet legacies

The central messages of the thesis is that the formulation of long-run demand for real balances in Russia broadly follows economic theory, and that macroeconomic theory offers some useful guidelines on the relation between money, although structural factors create some inflation inertia and lengthen the economic recession