YEREVAN, September 9. / ARKA /. Introduction of a single currency for member states of the Russia-led Eurasian Economic Union (EEU) would make shadow economic activities much more difficult, according to an Armenian economist Vardan Bostanjyan.
Speaking to ARKA, Bostanjyan said single currency would sharply limit opportunities for informal economic activities, which in turn would stimulate market participants to fulfill their tax and other obligations. This would result in an increase in tax revenues and a higher GDP, he argued.
“It’s like the Soviet system of management, which in spite of its negative aspects had also positive sides. In particular, a centralized management system actually eliminates opportunities for shadow economic activities. Of course, the single currency is not a substitute for this institution, but in general, it may become something like that,” he said.
“To address the many issues relating to trade, investment and, in general, the financial flows it is advisable that EEU member states switch to a single currency. It is not something supernatural. Just look at the European Union’s eurozone”, said Bostanjyan. -0-
