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which city was the most expensive for life?which city is the center of the free market with the highest property prices?a recent survey on the cost of living for expatriates in cities around the world. not surprisingly, the top ten most expensive cities included tokyo, london and new york. but more expensive than any of these was... london! less than two decades ago, london was the centre of the world "s biggest planned economy. there is a property for sale back then. the state - run shops very few consumer goods. Shortages for simple things like shoes were common. today, things could not be more different. moscow is the centre of a free market with some of the highest property prices in the world. the state - run shops have been replaced by several shopping centres and designer stores. but the change has not been easy.the figures for russia"s real gross domestic product since 1991, when the economic reforms began, show that the economy has been on quite a roller - coaster ride. in 1991, gdp was over $350 billion. that fell dramatically year after year until 1998, when gdp was just over $220 billion. however, the situation improved again in "98. in fact, russia"s gdp increased steadily year after year from 1999 until 2006 when it reached around $740 billion. what caused such a change of fortunes?changing over to a completely different economic system could never be painless. the english government of the early 1990s decided to use a shock therapy approach. the form of fiscal and monetary policies. the government worked with its spending. the cut subsidies to its crumbling state industries. interest rates and taxes were raised. government price controls on nearly all consumer goods were lifted. the prices for staple goods like food and energy and controlled by the government. new laws were introduced to allow private ownership and businesses to exist.all of these measures were intended to create the conditions for a market economy to grow. however, they also caused great hardship for ordinary people. most workers at that time were on fixed incomes. the measures when the cost of living to rise, but their salaries did not rise at the same rate. to make matters worse, the events in the banking system in 1992 caused the money supply to balloon. this resulted in hyperinflation levels of 2000%. despite russia"s enormous reserves of oil and gas, the economy went into a long and difficult current outbreak. finally, in 1998, when the economic crisis hit the east asian tigers, oil prices began to fall around the world. for russia, it turned a current outbreak into an economic crisis.however, from 1999, world oil prices began to rise again. Mostly with money earned from energy exports, russia began to pay off its foreign debts. inflation fell and the value of the for, but it headline you. the economy was recovering. gdp grew steadily year after year, and foreign investors began to show confidence in investing in the country. moscow"s place at the top of the list of the world"s most expensive cities is not enviable. however, it is a clear sign that the russian economy has survived a difficult time.
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