Think carefully about consequences of policies.

Care, interest and passion - these are probably the key elements for a successful woman in one of the highest positions in the Russian financial sector. Ksenia Yudaeva has now reached the perfect position for herself with a more than impressive CV. Her path to becoming Deputy President of the Bank of Russia, active since 2013 and reappointed in 2018, led the graduate economist through many stations. After completing her PhD at the Massachusetts Institute of Technology, holding remarkable scientific positions in economic and financial research at several renowned research centers in Moscow, she advised the President as senior economist and Director of the Sberbank Center for Macroeconomic Research, and finally became head of the Expert Directorate of the Presidential Administration.

She describes how she has been able to accomplish this impressive career, accompanied by numerous awards. Born in Moscow in 1970, she was able to take advantage of the opportunities that presented themselves to her from what she says was a privileged starting position in changing times, and in retrospect, her development almost surprises even herself. According to her, it goes without saying that such a career is by no means a foregone conclusion. A certain amount of luck also plays a big role.

In Ksenia Yudaeva's area of responsibility, financial stability is the primary goal, which she pursues by means of analyses and recommendations for directives. In this respect, the Central Bank of Russia is an exception as it seeks not only the regulation of the financial sector, but also that of individual financial institutions and markets. The fact that all regulatory instruments are combined in one institution makes it much easier, in her opinion, to implement a specific policy. Worldwide networks for the constant exchange of experience are also helpful.

From her professional perspective, Ksenia Yuadeva assesses the current state of the global economy as "not good". Especially the COVID-19 pandemic and worldwide lockdowns have curbed the economy and led to a collapse of the global financial market. But apart from a recovery and stabilization she also sees one thing: "The main problem is not economic! We understand how the economy will react, but there is no full understanding of the economic risks of a pandemic". These risks need to be evaluated with great care and in a politically independent manner, in order to introduce safe directives. In any case, it needs stricter regulations to minimize the effects of inflation.

In Ksenia Yudaeva's view, the pandemic is also an outlet for global digitization, which is an enormous advantage for rapid international exchange and therefore very positive. In this context, however, she is extremely critical of crypto currencies and even declares them to be an enemy of the Russian Central Bank. It is one of its declared goals to encourage institutions to use new technologies, but the use of crypto-currencies also harbors many risks for economic stability. Nevertheless, there is also a positive side: "The technology behind it can be used well and is important".

Ksenia Yudaeva does not want to give an evaluation of the policies of other central banks, but they generally have a clear mandate, namely stabilization and to do everything possible to fulfill this target. There are many longer-term risks, and there may be more actions necessary in other areas in particular, such as structural reforms and support for higher productivity. But the one central approach is: "We have to carefully think about different consequences of our policies".