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ISET Economist Blog

A blog about economics in the South Caucasus.
Dec
19

What Chile teaches Georgia

In 1991, the former finance minister of Chile, Alejandro Foxley, said in an interview: “We may not like the government that came before us. But they did many things right. We have inherited an economy that is an asset.” About twenty years before, General Augusto Pinochet had toppled the democratically elected President of Chile, Salvador Allende. Pinochet’s rule from 1973 to 1990 was characterized by severe violations of human rights, yet finally he agreed to hold a referendum on his political future, and when the Chilean people voted against him, he ste...
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Eric Livny
Why do we need a bloody and corrupt dictator to teach us the virtues of liberalizing Georgia’s foreign trade or not meddling with ... Read More
Tuesday, 20 December 2016 3:03 PM
Giorgi Vashakidze
The internet is full of critical accounts about the economic (and not only) aspects of Pinochets regime, including by Chileans and... Read More
Wednesday, 21 December 2016 8:08 AM
Eric Livny
I shared this article with a Hebrew University classmate of mine, currently an economics professor in Chile. This is what he wrote... Read More
Wednesday, 21 December 2016 1:01 PM
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Dec
10

Georgia Needs Compact Government!

In recent years, a tendency on the part of different authorities to consolidate has been noted worldwide. Competition agencies are merging with consumer protection agencies and/or regulators in order to establish more effective and less expensive public systems. Accordingly, since the first roundtable meeting on the optimal design of a competition agency, held in February 2003, OECD has organized two more roundtables concerning changes in institutional design of competition authorities in less than one year – one in December 2014, and one in June 2015. A...
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Nov
23

Georgia’s Ravaging Nepotism

Georgian media is full of stories about nepotism and the funny justifications of those involved: When Irakli Garibashvili, still being Minister of the Interior, was confronted with nepotism allegations, he replied: “Don’t you know that a relative of your wife is not your relative?” When the 23-year-old brother of Vice Prime Minister Kakhi Kaladze’s wife was appointed head of the City Hall’s department for education, sports, and youth affairs, Tbilisi Mayor Davit Narmania stated that he had “known him for a long time and did not consider any oth...
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Mar
06

What Can We Do about the Lari Depreciation?

  Unlike most commodities that are provided by private actors competing with each other, a currency is provided by a monopolist. The only institution that is allowed to produce laris is the National Bank of Georgia (NBG). The task of the NBG-monopolist is made difficult by various peculiarities that cannot be found in other markets. First of all, lari once injected into the economy are not consumed or used up. They remain in the economy “until the cows come home”, as they say in Scotland. This is starkly different to what we observe in most other ma...
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Guest — Giorgi Bakradze
"...lari have to be bought back, depleting scarce foreign currency reserves." – there surely are more ways to decrease the money s... Read More
Friday, 06 March 2015 8:08 PM
Guest — megiddo02
There are not really other ways to get money out of the system. If you increase the interest rate, more money will be deposited at... Read More
Friday, 06 March 2015 8:08 PM
Guest — Giorgi Bakradze
My reply should have got here, sorry
Friday, 06 March 2015 10:10 PM
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