Western Caspian University

Assessment of the impact of monetary policy on economic growth in Azerbaijan

"Assessment of the impact of monetary policy on economic growth in Azerbaijan"

Dissertant: Hajiyev Murad Zaman oglu

Scientific adviser: Ph.D Econ. Prof., Ganbarov Fuad Alinagi oglu

Relevance and level of development of the topic: The recurring economic and financial crises in the world make it necessary to constantly review the role of monetary policy in the economic development of countries. If a large amount of money circulating in the economy means high economic activity, low unemployment, and less money means low economic activity, low inflation, high unemployment. Central banks build their defensive reflex on the national currency strategy so that the national economy does not lose "power". In this case, processes like devaluations, change of banknotes, fixing of exchange rates, issuance of additional cash in circulation, etc. are observed. Along with maintaining macroeconomic stability in the country, the Central Banks also work to support economic growth and the diversification of the national economy. The dissertation examines the role of the monetary policy of the Central Bank of Azerbaijan in economic development. It takes into consideration the extent to which some macroeconomic variables directing the development of the Azerbaijani economy are affected by monetary policy.

The object and subject of the research: The object of the research is the monetary policy of the Central Bank. The subject of the study is the discount rate of the Central Bank.

Substantiation of the topic: The dissertation conducted the assessment of the effectiveness and productivity of monetary policy in Azerbaijan. From the reflected theoretical provisions and calculated results, the correlation between future monetary policy instruments and macroeconomic indicators can be compared. At the same time, it can be used to shape the Central Bank's strategy to achieve long-term goals of creating a sustainable monetary mechanism.

Since the dissertation identifies the scale and possibilities of monetary policy in ensuring economic growth, the fact that the problem does not depend only on monetary policy and the need for a comprehensive approach to the issue give a chance to the government to assess its future decisions practically, which can accelerate economic growth.

Scientific novelty of the research:

Econometric assessment of the effectiveness and productivity of monetary policy in Azerbaijan has been carried out.

The dynamics of the world economy was analyzed, issues of special importance were studied, and it was determined that the monetary policies pursued by central banks have changed. Thus, it was concluded that the way out of the current economic crisis should be carried out not by traditional, but by fundamentally new means and methods.

x