ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Mar
04

Georgia's New European Modus Operandi

It was the best of times, it was the worst of times, It was the age of wisdom, it was the age of foolishness, It was the epoch of belief, it was the epoch of incredulity, It was the season of light, it was the season of darkness … - Charles Dickens, A Tale of Two Cities A CHRONICLE OF A DEATH FORETOLD? The above quote seems to fit the state of affairs in the European Union fairly well, as the EU’s crisis is continuing, getting deeper, and engulfing more actors than when it started. To name a few well-known events and stats: Greece probably had the first ...
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Eric Livny
It is convenient to blame the EU for the current rise of nationalism in Europe and whatnot. Nationalism and religious fanaticism a... Read More
Monday, 06 March 2017 9:09 AM
Florian Biermann
Eric:There was always populism everywhere, even in ancient Rome (Cato said: Ceterum censeo Carthaginem esse delendam). What is new... Read More
Tuesday, 07 March 2017 10:10 AM
Eric Livny
Nothing will stop people from moving from (extremely) high pressure to (extremely) low pressure areas. Osmosis-style, through bord... Read More
Tuesday, 07 March 2017 11:11 AM
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Feb
14

Europe’s Dramatic Monetary Failure

This week, another crazy idea haunted economically faltering Europe. According to the plans of European politicians, the 500 euro note will disappear and cash payments above 5,000 euro will be made illegal. Officially a measure against money laundering, the pretext was correctly debunked by Hans-Werner Sinn in the Frankfurter Allgemeine Zeitung: the true reasons for this step is to push interest rates further down. Big notes allow to store wealth in cash, and if that is not possible anymore, interest rates can be brought even further into the negative, d...
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Simon Appleby
The 2008/9 "stimulus" in Australia involved mailing every household in the country a checque for $1000, to stimulate household con... Read More
Sunday, 14 February 2016 7:07 AM
Guest — NP
A much simpler (and much needed) intervention would be to: 1) print money; 2) use it to finance investments in European's infrastr... Read More
Sunday, 14 February 2016 8:08 AM
Guest — MD
For the helicopter drop you need other party as well. I cannot imagine how the ECB all alone could boost its liability side withou... Read More
Monday, 15 February 2016 1:01 PM
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Sep
14

Georgia’s Currency is Much More Than the GEL/USD Exchange Rate

It is easy to understand what it means for an economy to be weak or strong. We know that a strong economy is characterized by low unemployment and high growth rates. Other desirable traits are, for example, low levels of poverty and income inequality, when all citizens enjoy reasonable standards of living.  Things are less clear when we think about our national currencies.  When designating currencies as “weak” or “strong”, we usually think of the exchange rate against the dollar or the euro. Having a “weak” currency sounds like a bad thing, wh...
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Guest — JanFidrmuc
Good article. I wonder if dollarization (or euroization) might be the way forward, either by completely replacing the lari in circ... Read More
Tuesday, 15 September 2015 2:02 PM
Guest — Yasya
As far as currency is concerned I am of the opinion that adopting either USD or Euro may not have clear advantages for Georgia. Th... Read More
Tuesday, 15 September 2015 6:06 PM
Guest — Chase
I agree with Yasya that it wouldn't be the most advantageous. To add to the argument, I interviewed Matthias Matthijs of Johns Hop... Read More
Wednesday, 16 September 2015 10:10 AM
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