Lack of co-ordination of fiscal and monetary policies, disregard for the high degree of inflation persistency, unstable relations and bilateral causality between money supply and inflation, all imply an inappropriateness of money-based stabilizations for the transition economy of postcommunist Russia conducted under the auspices of the IMF. As a representative of the West, the IMF pretended to aid Russians through stabilization. The IMF promised loans while the Russian government promised reforms. This turned out to be a pseudo lending for pseudo reforms with disastrous consequences for the Russian economy as explored and scrutinized in this volume.