Azerbaijan 2014-2016
Tomáš Motl
Oil price drop lead to REER
depreciation – but how exactly?
2
CA surpluses disappeared!
3
Foreign reserves rapidly declining
4
What choice did the CB have?
5
• What was the alternative to depreciation?
Why so low inflation?
6
• Long-term growth potential also affected
Despite depreciation, growth
suffered large slump
7
• Is there any lesson for other countries as well?
• How does this compare to Spain in 2009-2015?
• Russia in 2015?
• Czech Republic in 2020?
Compare with Spain, Russia,
Slovakia, Czech Republic
8