Rapid Credit Growth in Azerbaijan

Master's Thesis from the year 2010 in the subject Economics - Macro-economics general grade: A- Central European University Budapest language: English abstract: This thesis investigates a credit boom in Azerbaijan in 2008 year. I also employ VECM to my model to figure out long-run and short-run dynamics and equilibrium level of credit. This paper also studies macroeconomic implications of high credit expansion. The study shows that credit boom creates non-trivial risk for macro aggregates and is followed by financial crisis in the economy.