Fiscal and Monetary Policy in Georgia's Transitional Economy

Abstract

Separate aspects of fiscal and monetary policy coordination have been covered by both foreign and Georgian academic economists. In this regard, first of all, it is worth noting the founder of the “neoclassical synthesis and the theory of fiscal and monetary policy coordination” P. Samuelson. As he notes, “monetary and fiscal policies are coordinated in order to achieve a progressive economy that ensures price stability and increases production potential. In his opinion, “all over the free world, governments and central banks are showing that they can overcome economic recessions. They have fiscal and monetary policy instruments with which they can influence the factors that determine the growth of national income and employment.