ECONOMIC POLICY RESPONSE TO THE PANDEMIC SITUATION AND ASSESSMENT OF ECONOMIC REGULATION POLICY IN AZERBAIJAN
DOI:
https://doi.org/10.31732/2663-2209-2021-61-29-46Keywords:
global recession, financial crisis, macroeconomic stability, risk assessment, monetary policy, fiscal policy, liquidity provision, optimal strategy, dependencies, reliability interval, econometric modelling, multi-regression modelAbstract
The global pandemic throughout this period disseminated new approaches and realities that could not be reckoned by trustworthy credit rating agencies specializing in risk computation and organizations specializing in economic anticipating. Azerbaijan Republic as a country integrated into the global world, has coped to prevent the acute negative consequences of the Coronavirus (COVID-19) pandemic by accepting timely legislative enactment to lessen the negative outcomes of sharp fluctuations in energy trades, on the country's formed economy, macroeconomic permanency and stability, employment and developing entrepreneurship. We are witness of a globally extended health crisis unlike any crisis in the last century, spreading over human suffering, and affecting people’s daily lives. We can frankly say this is much more than a noted health crisis. It is economic, human and extended social crisis. Normally, an easing of financing conditions boosts demand by encouraging firms to borrow and invest, and households to bring forward future income and consume more. In turbulent times, monetary policy interventions also eliminate excess risk pricing from the market. The aim of the article is to study the reaction of economic policy to the situation with the pandemic and to assess the policy of economic regulation in Azerbaijan. The point of our research is to determine the extent to which the monetary environment is conducive to the adoption of an optimal strategy, along with the effectiveness of the measures taken in the country. İn first phase, paper touches general directions of economic regulation in developed and CİS countries, at the same time particularly analyzes the directions of regulation processes in Azerbaijan. In the second phase, we will analyze the establishment of optimal management strategies for the monetary policy system on the basis of econometric modeling in order to fully understand the extent of regulation. Based on the actual indicators of monetary economic indicators, the model will assess whether the role of sustainable decisions in regulation will be successful.
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