Analyzing price level in a booming economy: the case of Azerbaijan

Hasanov, Fakhri (2009): Analyzing price level in a booming economy: the case of Azerbaijan. Published in: Economics Education and Research Consortium No. Working paper No11/02E (2011): pp. 1-34.

Abstract

The study analyzes price level in Azerbaijan economy over the period of 2000-2007 by employing a specific approach. The paper concludes that price increases caused by a resource boom differs from the price increases generated by a non-booming economy. Thereby, inflation mainly caused by resource boom has its own specific features in terms of impact on economy and therefore requires specific policy response. Some policy recommendations related to monetary and fiscal policies are suggested for elimination of harmful effects of resource boom and for preventing high price level in Azerbaijani economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Oil boom, Dutch Disease, Price level, Azerbaijan economy, Bound Testing Approach.
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E64 - Incomes Policy ; Price Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q33 - Resource Booms; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P22 - Prices

References

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