Browsing by Author "Papava, Vladimer"
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Item Georgia’s economic model: the “consumer paradox” and the “tourist trap”(Ivane Javakhishvili Tbilisi State University Press, 2018) Papava, VladimerGeorgia’s economic model is based less on increasing production and more on stimulating consumption. In 2017 imports have been exceeding exports by 3.8 times, and the share of imported goods in the consumer basket, as well as the food basket, consistently reaches about 80%. A knowledge-based economy must be declared by Georgia’s government a priority. It is also compulsory for the government’s vision to focus on developing the real sector of the economy through its industrialization.Item Inflation and its modifications (on the terminological aspect)(Ivane Javakhishvili Tbilisi State University Press, 2019) Papava, Vladimer; Charaia, VakhtangThe traditional inflation index regrettably fails in developing countries. Some of the commodity groups do not reflect the problems of the low income population. Agrarian inflation – agflation, becomes more and more popular in economics. The paper proposes a statistical indicator – munflation, which reflects price fluctuations on medication, utilities and nutrition. Additionally, for countries where import exceeds export by several times, obviously, it is necessary that price changes be calculated for imported goods and services (imflation).Item On the measurement of imflation and complex inflation targeting(Ivane Javakhishvili Tbilisi State University Press, 2019) Papava, Vladimer; Charaia, VakhtangThe paper analyzes the regime of inflation targeting which, unfortunately, has a number of deficiencies. One of them is that inflation targeting is powerless toward imported inflation. This problem is especially important in import dependent countries. The paper suggests the notion of an imflation index which reflects the dynamics of imported product prices in the domestic market where an important role is devoted to the national currency exchange rate. The paper suggests a complex inflation targeting when monetary policy indicators are both inflation and imflation.Item On the measurement of tax corruption(Ivane Javakhishvili Tbilisi State University Press, 2021) Khaduri, Nodar; Papava, VladimerThe article discusses the issues of measuring the level of tax corruption in the country. The authors proposed two ways to measure tax corruption. Both ways give the same result. Issues related to the specifics of taxation in various sectors of the economy are discussed separately. These are, first of all, agriculture and foreign trade. Taking into account these features of taxation, this paper proposes the use of a system of indicators of tax corruption. Each of the indicators of the system can be measured by the approaches discussed in this paper.Item On the threat of zombification of the retroeconomy(Ivane Javakhishvili Tbilisi State University Press, 2023) Papava, VladimerThe article discusses the mechanism of zombification of the economy in the context of the COVID-19 pandemic. In at least some part of any economy in any country, relatively outdated technologies are being used. This part of the economy, i.e. retroeconomy, due to zombification, can most easily transformed into a necroeconomy, based on absolutely outdated technologies. In order to avoid the danger of zombifying a retroeconomy, it is necessary to change the basic principle in bankruptcy law, as a result of which the liquidation of insolvent firms through bankruptcy becomes a priority.Item Why is the state not run like a company (some thoughts on Paul Krugman’s article “The State is Not a Company”)(Ivane Javakhishvili Tbilisi State University Press, 2019) Papava, VladimerIt has been more than two decades since the mistaken belief got a foothold in Georgia piecemeal that a minister should be a good manager and his professional suitability for the field in which this “good manager” becomes the head of the ministry is ignored in political circles. As a result, for years the Ministry of Finance was headed by a physicist (who even boasted of being a good manager), the Ministry of Economy – by a biologist and a physician, the Ministry of Agriculture – by a lawyer, the Ministry of Energy – by a sportsman, the Ministry of Health Care – by a lawyer first then a philosopher who was replaced by a historian. Questions arise as to whether professional education is required in taking a high political position or whether it is sufficient for a minister to be a good manager only. More specifically, who should lead the country’s economy – an economist or a manager? To answer these questions, it is necessary to understand the difference between the country and the company. More than two decades have passed since a prominent American economist, the Nobel prize winner in economics, Professor Paul Krugman, published an article with an intriguing title, “A Country Is Not a Company,” detailing the fundamental difference between a country and a company according to which the first is closed system, and the other – open (Krugman, 1996). This article discusses a number of visible examples of the principle difference between an economist’s thinking style and a manager’s thinking style. The goal for the rulers of the state is to increase the well-being of its population, to achieve sustainable economic development and inclusive economic growth. As for the company, its determinant is the increase of profit and/or the value of the company itself. This is the principle difference between the goals of the state and the company and the criteria for evaluating success (Papava, 2018). Given that state and company have different goals, the answers to these questions are simple: Of course, high-level government positions require the appointment of professional economists, and managers’ place is in business only. Although it has been a long time since Professor Krugman’s article was published, it has not lost its relevance and it must surely be read by heads of state, politicians, journalists, economists, and students of economics. Thanks to the editorial office of the journal Economics and Business, Paul Krugman’s article has now become available in Georgian, and I am sure it will enable readers to pay close attention to many of the interesting aspects of economist’s profession.