Do monetary and fiscal policies interact in oil-exporting countries? Evidence from Azerbaijan

Heyran Aliyeva () and Ramiz Rahmanov
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Heyran Aliyeva: Central Bank of Azerbaijan Republic
Ramiz Rahmanov: Central Bank of Azerbaijan Republic

No 1901, Working Papers from Central Bank of Azerbaijan Republic

Abstract: This paper examines the interaction between the fiscal and monetary policies in Azerbaijan using the VAR methodology and quarterly data for the period 2003Q1-2018Q4. The results of the Granger causality tests and impulse response analysis show that although both the monetary and fiscal policies demonstrate activity, the fiscal policy dominates over the monetary policy. In terms of the fiscal regime classification, we find the regime in the country to be non-Ricardian.

Keywords: Fiscal policy; Monetary policy; Interaction; Policy regimes; Azerbaijan (search for similar items in EconPapers)
JEL-codes: F31 F39 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2019-04-06
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Persistent link: https://EconPapers.repec.org/RePEc:aze:wpaper:1901

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