Open AccessPROBLEMS OF MACROECONOMIC STABILIZATION IN GEORGIA IN THE CONDITIONS OF AN OPEN ECONOMY
Author(s) -
George Abuselidze,
Davit Qatamadze
Publication year - 2017
Publication title -
ekonomìčnij analìz
Language(s) - English
Resource type - Journals
eISSN - 2219-4649
pISSN - 1993-0259
DOI - 10.35774/econa2017.02.009
Subject(s) - economics , monetary policy , government (linguistics) , fiscal policy , open economy , balance (ability) , monetary economics , government spending , aggregate demand , control (management) , production (economics) , economic policy , public spending , macroeconomics , market economy , exchange rate , politics , medicine , linguistics , philosophy , welfare , physical medicine and rehabilitation , management , law , political science
In the open economy control conditions, the government’s main concern should be ensurance of macroeconomic stabilization. One of real tools for achieving this goal is monetary and budgetary levers’ combination, in which strong fiscal stimuls should be merged with monetary policy, although herewith it requires tough coordination between government-led public and the National Bank’s monetary policies.In addition, we have to note noted that monetary levers should be used to influence tax balance, while fiscal policy should be oriented only on regulation of aggregate demand. Cutting taxes and decreasing government spending is essential to stimulate production in Georgia, as well as increasing research funds and developing effective system for qualification growth.