Which 1998 Russian market crisis followed the government’s ruble devaluation and debt default?

The 1998 Russian market crisis that followed the ruble devaluation and debt default was the Russian financial crisis.

Russia had financed government spending with short-term treasury bills while struggling with weak tax collection, falling commodity revenues, and political uncertainty. Investors became increasingly unwilling to roll over the debt, placing pressure on the ruble and the banking system.

On August 17, 1998, the government devalued the ruble, declared a moratorium on some foreign debt payments, and restructured domestic debt. The ruble lost much of its value, banks failed or suspended payments, and inflation surged.

The crisis was partly linked to the 1997 Asian financial crisis, which reduced investor appetite for emerging markets. It is not the same event as Russia’s 1992 price liberalization shock or the 2008 global financial crisis.