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Modern Challenges of Monetary Policy Strategies: Inflation and Devaluation Influence on Economic Development of the Country

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  • Abuselidze, George

Abstract

The article discusses causes and socio-economic peculiarities of one of the most difficult and undesirable condition for the economy-inflation and devaluation. The purpose of the research is to analyze the socio-economic results of inflation and devaluation in Georgia and to determine the main directions to overcome it. Due to study purposes was investigated the causes of inflation and devaluation, as well as was examined its influence on economic development of the country and its influence on welfare of each citizen. In the article are discussed main models of anti-inflation regulation, as well as foreign experience of monetary regulation of inflationary processes and is an evaluated possibility of their use in Georgia. The National Bank monetary regulation effectiveness is assessed and recommendations have been developed.

Suggested Citation

  • Abuselidze, George, 2018. "Modern Challenges of Monetary Policy Strategies: Inflation and Devaluation Influence on Economic Development of the Country," MPRA Paper 99885, University Library of Munich, Germany, revised 26 Jan 2019.
    • Handle: RePEc:pra:mprapa:99885
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    References listed on IDEAS

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    7. Paweł Gajewski, 2018. "Patterns of regional inflation persistence in a C.E.E. country. The case of Poland," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 31(1), pages 1351-1366, January.
    8. Andrea Vaona & Guido Ascari, 2012. "Regional Inflation Persistence: Evidence from Italy," Regional Studies, Taylor & Francis Journals, vol. 46(4), pages 509-523, June.
    9. Chang, Yoosoon, 2002. "Nonlinear IV unit root tests in panels with cross-sectional dependency," Journal of Econometrics, Elsevier, vol. 110(2), pages 261-292, October.
    10. Michal Franta & Branislav Saxa & Kateøina Šmídková, 2010. "The Role of Inflation Persistence in the Inflation Process in the New EU Member States," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 60(6), pages 480-500, December.
    11. Ricardo Sousa & James Yetman, 2016. "Inflation expectations and monetary policy," BIS Papers chapters, in: Bank for International Settlements (ed.), Inflation mechanisms, expectations and monetary policy, volume 89, pages 41-67, Bank for International Settlements.
    12. Abuselidze, George, 2018. "Fiscal Policy Directions Of Small Enterprises and Anti-Crisis Measures on Modern Stage: During the Transformation of Georgia to the EU," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(1), pages 1-11.
    13. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    14. Jörg Breitung & Samarjit Das, 2005. "Panel unit root tests under cross‐sectional dependence," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 59(4), pages 414-433, November.
    15. Paweł Baranowski & Paweł Gajewski, 2016. "Credible enough? Forward guidance and perceived National Bank of Poland's policy rule," Applied Economics Letters, Taylor & Francis Journals, vol. 23(2), pages 89-92, February.
    16. Abuselidze, George, 2012. "The Influence of Optimal Tax Burden on Economic Activity and Production Capacity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(4(16)), pages 493-503.
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    Cited by:

    1. Abuselidze, George & Slobodianyk, Anna, 2020. "Analysis and Control of Bankruptcy and Reorganization Processes: Case Studies Using Accounting Data," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 164.
    2. Abuselidze, George & Mamaladze, Lela, 2019. "U.S-Turkey Crisis and Its Impact on the Economy of the Black Sea Region," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 135.
    3. Gia Zoidze & George Abuselidze, 2021. "Covid-19 Pandemic And Currency Risk Analysis In Georgia," Entrepreneurship, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 9(2), pages 33-46.
    4. Dr. Zahid Hussain Shaikh & Ragni Lund & Dr. Niaz Hussain Ghumro, 2024. "Macroeconomic dynamics and Panel VAR -Analysis in Developing Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 118-126.
    5. Datsii, Oleksandr & Levchenko, Nataliia & Shyshkanova, Ganna & Dmytrenko, Ruslan & Abuselidze, George, 2021. "State decoupling audit of low-carbon agricultural production," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 45(340), pages 94-112.
    6. Kekelidze, Lia, 2021. "Инвестиционната Среда И Проблемите На Придобиването На Собственост Върху Недвижими Имоти В Грузия От Инвеститори [The investment environment and the problems of origination of Investors’ ownership ," MPRA Paper 109051, University Library of Munich, Germany.

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    More about this item

    Keywords

    Inflation; Devaluation; Monetary Policy; Welfare; Economical Activity; Economic Development; Georgia.;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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