Analyzing Price Level in a Booming Economy: The Case of Azerbaijan

Economics Educational and Research Concortium, Working Paper No. 11/02E

34 Pages Posted: 16 Mar 2011

See all articles by Hasanov Fakhri

Hasanov Fakhri

Qafqaz University - Center for Socio-Economic Research; George Washington University - Research Program on Forecasting; Institute of Cybernetics - Department of Modeling Socio-Economic Processes

Date Written: 2011

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.

Keywords: Oil boom, Dutch Disease, Price level, Azerbaijan economy, Bound Testing Approach

JEL Classification: P22, E64, Q33, C51

Suggested Citation

Hasanov, Fakhri, Analyzing Price Level in a Booming Economy: The Case of Azerbaijan (2011). Economics Educational and Research Concortium, Working Paper No. 11/02E, Available at SSRN: https://ssrn.com/abstract=1784323 or http://dx.doi.org/10.2139/ssrn.1784323

Fakhri Hasanov (Contact Author)

Qafqaz University - Center for Socio-Economic Research ( email )

Baku Sumgait Road 16th km.
Hasan Aliyev Str. 120
Khirdalan, Baku AZ0101
Azerbaijan
+994 (12) 4482862-66 (Phone)
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HOME PAGE: http://www.qu.edu.az/

George Washington University - Research Program on Forecasting ( email )

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Washington, DC 20052
United States
(202) 994-6150 (Phone)
(202) 994-6147 (Fax)

HOME PAGE: http://research.columbian.gwu.edu/cer/research/forecasting

Institute of Cybernetics - Department of Modeling Socio-Economic Processes ( email )

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Baku, Az1141
Azerbaijan
(994 12) 5390151 (Phone)
(994 12) 5392633 (Fax)

HOME PAGE: http://www.cyber.az/

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