Five days after my post regarding why Azerbaijan should not amend its state budget, the government announced the 2022 budget amendments. With this post, I will look at what changed and share my opinion.
Tag: Manat
Oil Sector of Azerbaijan in 2020 and its Implications for the State Budget
The Coronavirus pandemic has affected almost every sector of the global economy in the first five months of 2020. To add insult to injury, the economy of Azerbaijan has been further pressured by the historically low oil prices. In this post, I decided to take a brief look at the oil sector of Azerbaijan today and its potential implications for us in the near future.
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An Unlikely Hero – How Gold Can Aid Manat?
In my latest post, I delved into the topic of Azerbaijani Manat’s grim-looking short-term future following the surging demand for foreign exchange in March and concluded that there is a substantial risk of devaluation during 2020. In this post, I am going to share a concept on how the government can at least delay this devaluation for the near future and avoid exacerbating the economic situation in the country already troubled by coronavirus epidemic…
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Fiscal Rule of Azerbaijan: A Positive First Step?
As a broad term, fiscal policy refers to the management of taxes and expenditures by governments. It is certainly the number one tool that the governments utilize to intervene into the national economy. That intervention, on the other hand, should have definite restraints, which brings us to the topic of fiscal rules…
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Comparative Advantage of Azerbaijan
One of the most predominant principles of international trade is the comparative advantage theory, developed by the British economist David Ricardo in the early 19th century. To put it simply, the theory argues that a country can boost its welfare if it specializes in certain products in which it has comparably lower cost of production (in other words, lower opportunity cost) and then trade with others. Keeping this principle in mind, one may wonder, in which products Azerbaijan can have comparative advantage and how can we use that to maximize our national well-being?
Economir 