TR1 wrote:Of course it will. Prices go up. Savings are wiped out. Wages don't adjust quickly enough.
That won't happen to an economy who's fundamentals are in check
Even if people exchange their roubles for dollars, and then their dollars for roubles again - that won't collapse the Russian economy
What's happening is that imports have become a lot more expensive, and people have started a buying spree in anticipation of inflation and a further deevaluation of the rouble. But not many people are panicking converting all their savings into Euros or Dollars, although many are opening Euro/Dollar accounts.
There will be a correction, when prices, wages, etc... all go up. That will come next year.
Nothing so dramatic as you predict though.
As GazB mentioned, there are domestic alternatives for most critical things; materials, food, parts, machinery, etc... so businesses won't go out of business and ordinary people won't starve, they'll just depend more and more on domestic producers (whose prices will also go up due to the correction I mentioned, but not as much). Even many consumer goods have domestic producers.