Page 35 - Azerbaijan State University of Economics

V.Bayramov: Economic diversification policy in context of Azerbaijan's accession
to the WTO

In total, there are twenty equations and nineteen endogenous variables.
According to Walras‟s Law, one of the equations, say the savings-investment
identity, can be dropped.
Real Flows:
(1) =

(2)

(3)

(4) E/ = ( )

(5) M/ )

Nominal Flows:

(6) T = R * * M + + * Y - E

(7) Y =

(8) S =

(9)

(10)
(11)

(12)

(13) , )

(14) , )
(15) R ≡ 1

(16) = 0
(17) = 0

e
(18) M – pm * E – ft – re =
(19)

(20)

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