Economic Inertia and Economic Growth: Is There Any Contradiction?

Abstract

The article is devoted to the phenomenon of inertia in economic development which hinders the modern economic growth. A variety of factors causing the inertia is revealed including instability of world and national economy and unfavorable geopolitical environment. The economic growth and economic inertia are shown in its dialectical unity. We also bring to light factors which exacerbate the reduction in the rate of the Russian economic growth and the risk of recession escalation. On the basis of economic forecasts which are given not only by official government bodies but also by alternative nongovernment institutions we explore the reasons of economic inertia and also show the urgent need of an effective mechanism for overcoming inertia in a recession phase of economic development. The mechanism takes into account modern challenges and threats to Russian economic resilience. The article contains the general description of the mentioned mechanism particularly on both institutional and structural policy level.