What was the impact of the dramatic decline in the value of the ruble, the Russian currency?

1) Increased savings for the people
2) Economic stability and growth
3) Loss of people's savings
4) A surge in food production

3

The dramatic decline in the value of the ruble led to high inflation and the loss of people's savings.

As a consequence of the shock therapy, the value of the ruble, the Russian currency, declined dramatically. The rate of inflation was so high that people lost all their savings. The collective farm system disintegrated leaving people without food security, and Russia started to import food. The real GDP of Russia in 1999 was below what it was in 1989. The old trading structure broke down with no alternative in its place. The old system of social welfare was systematically destroyed. The withdrawal of government subsidies pushed large sections of the people into poverty. The middle classes were pushed to the periphery of society, and the academic and intellectual manpower disintegrated or migrated. A mafia emerged in most of these countries and started controlling many economic activities. Privatisation led to new disparities. Post-Soviet states, especially Russia, were divided between rich and poor regions. Unlike the earlier system, there was now great economic inequality between people.