Coordination of Fiscal and Monetary Regulation in Armenia
https://doi.org/10.26794/2587-5671-2020-24-1-105-118
Abstract
The aim of the study is to reveal if there is a coordination of fiscal and monetary policies in Armenia, as well as to assess its impact on economic growth in the country. Methods used: statistical analysis, logistic regressions, mathematical modeling. The authors analyzed the economic growth rates and annual GDP growth per capita in Armenia from 1990 to 2018. They described the model of coordination of fiscal and monetary regulation. The relationship and interdependence between the monetary and fiscal regulation mechanisms are represented by mathematical equations. Provided are the calculations for the optimal values of fiscal and monetary indicators, as well as economic indicators for Nash equilibrium. The study results showed that fiscal and monetary regulation in Armenia is ineffective; there is no coordination of regulatory mechanisms, which is detrimental to the economic growth rate. The authors conclude that it is necessary to revise approaches to monetary and fiscal policies for a greater emphasis on coordination and harmonization of macroeconomic regulation instruments to ensure sustainable economic growth in the long term.
About the Authors
M. A. Voskanyan
Russian-Armenian University
Armenia
Mariam A. Voskanyan — Dr. Sci. (Econ.), Assoc. Prof., Russian-Armenian University, Head of Department of Economics and Finance, Institute of Economics and Business
Armenia
Mariam A. Voskanyan — Dr. Sci. (Econ.), Assoc. Prof., Russian-Armenian University, Head of Department of Economics and Finance, Institute of Economics and Business
L. V. Paronyan
Russian-Armenian University
Russian Federation
Lilit V. Paronyan — Bachelor, Institute of Economics and Business
Russian Federation
Lilit V. Paronyan — Bachelor, Institute of Economics and Business
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Review
For citations:
Voskanyan M.A., Paronyan L.V. Coordination of Fiscal and Monetary Regulation in Armenia. Finance: Theory and Practice. 2020;24(1):105-118. https://doi.org/10.26794/2587-5671-2020-24-1-105-118
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