NBG Governor Visits ISET, Discusses Monetary Policies
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On Wednesday January 23, ISET hosted the Governor of the National Bank of Georgia (NBG), Mr. Koba Gvenetadze. Mr. Gvenetadze delivered a profoundly informative lecture about the importance of monetary policies for economic well-being, discussing issues such as the importance of the price stability objective, inflation targeting frameworks (specifically why it is so crucial to avoid both deflation and high inflation), and the efficiency of monetary policy transmission mechanisms under a flexible exchange rate.
Since Milton Friedman, in his Presidential Address to the American Economic Association, presented a clear description of the role of monetary policies, economists (theorists and policymakers) have concentrated on studying the importance of price stability as a primary objective of monetary policies, and designing an optimal policy to achieve it. The economic costs of high and unstable inflation can be enormous. First, high inflation creates uncertainty in prices and distorts price signals, which leads to the inefficient allocation of scarce resources. Secondly, uncertainty related to high and volatile inflation complicates long-term planning, which forces businesses to invest in short-term projects, instead of investing in more productive long-term activities. Thirdly, lower inflation reduces interest rates and contributes to financial stability. However, moderate inflation is a result of economic growth.
Conference on Wine Business Research in South Africa
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From January 14-16, ISET’s Pati Mamardashvili participated in the 11th conference of the Academy of Wine Business Research (AWBR), hosted by the Department of Business Management at the University of Stellenbosch, South Africa.
The regular conference of the AWBR brings together an international society of scholars working in wine sector research. It provides a great opportunity to network and learn about ongoing research activities related to wine economics and wine business management.
Natalia Velikova (from Texas Tech University) and Pati Mamardashvili presented a paper entitled “Selling Wine Downtown: Who is the Urban Winery Consumer?”, co-authored with Tim Dodd and Matthew Bauman (Texas Tech University).
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