Covertibility of the rouble

This paper analyzes internal convertibility of the rouble, its meaning, conditions for its success as part of a monetary stabilization package, and possible problems if it is introduced when these conditions are lacking. It is argued that the introduction of internal convertibility as part of a successful stabilization package has a number of advantages, that the conditions necessary for this to be possible currently do not exist in the U.S.S.R., and that an unsuccessful monetary stabilization package may make the situation worse and not better. Whether or not the rouble will remain the Union currency is also considered.