ISET Economist Blog

A blog about economics in the South Caucasus.

The Inflation Targeting Framework of the National Bank of Georgia: Is It the Right Model?

As the Georgian Lari (GEL) briefly depreciated in September 2020, the National Bank of Georgia (NBG) once again became the subject of criticism for not being able to stabilize the exchange rate even though it had injected 120 million US$ in the economy. At a press conference (2020/09/16), the President of the NBG objected that the aim of the injection of US$ was not to strengthen the GEL since the NBG operated under a floating exchange rate policy. Rather, he went on to explain, the NBG’s constitutional duty was to ensure price stability on the basis of ...
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Is Lari Hitting Our Dinner Tables?

“The Arab Spring was a revolution of the hungry.” So stated The Boston Globe’s journalist Thanassis Cambanis in his 2011 article claiming that in countries where access to food was an issue, “hitting the dinner table” is not a good idea. In order to demonstrate the importance of food prices, he went even further, and reminded his readers that when food price inflation in Egypt reached almost 19%, the president of the country had to resign. Food price spikes like the grain price spike in 2007-2008 or some other shocks like currency depreciation, can lead ...
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Guest — GB
The lari started to depreciate in 2014, and by the end of 2016, the local currency had depreciated by almost 50% in nominal terms.... Read More
Tuesday, 14 February 2017 7:07 AM
Salome Gelashvili
Thank you for your comment. I talk about real exchange rates in one of the paragraphs of the blog in order to make clear that lo... Read More
Tuesday, 14 February 2017 8:08 AM
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