Russia's hard currency reserves fell last month, drained by debt payments and efforts to prop up the increasingly weak ruble. Parliament moved Friday to limit the amount of money the government can print, hoping to rein in inflation that now stands at 70 percent this year and is threatening to spiral out of control. As Russia wrestles with its economic crisis, one of the trickiest questions is how much money President Boris Yeltsin's government should inject into the economy.
More money helps stimulate the weak economy, but it also stokes inflation.
Since a financial meltdown in August, the government has pumped billions of rubles into the economy in a bid to revive ailing banks and pay off state workers whose wages are months overdue. Many economists had predicted the government would flood the economy with additional cash. However, the economists say it will be more difficult for Russia to rein in spending in coming months because it faces ever larger debts and shrinking revenues. The Duma passed the bill Friday on its second reading. It must be approved one more time before going to parliament's upper chamber, where it's also expected to be approved.