FACTORS AFFECTING THE EXCHANGE RATE AND THE PECULIARITIES OF ECONOMIC LAWS IN DEVELOPING COUNTRIES (THE CASE OF GEORGIA)
FACTORS AFFECTING THE EXCHANGE RATE AND THE PECULIARITIES OF ECONOMIC LAWS IN DEVELOPING COUNTRIES (THE CASE OF GEORGIA)

Summary/Abstract: After the 2007 financial crisis, which is also called the derivatives crisis, the issue of the place and role of economists and financiers was particularly acute. Paul Krugman tried to formulate what researchers in this category should do. First, they must foresee the dynamics of events, so called the correct "forecast", external and internal factors must be named and their impact on the country, need to research new trends, what is new in the market and also explore the impact of new circumstances on old content and form. The important thing is for the variations of form and content to be adapted to the existing reality and the actions resulting from it. In this respect economist have a great function, But at the same time, if we recall that the shock of the 2007-08 financial crisis was unexpected volatility and the currency war are still going on in the currency market, it turns out that economists are not able to predict what will happen tomorrow or why something has happened. After World War II, especially in the 50s, it became fashionable to subject economics to mathematics. Many scholars believed that mathematical calculations would change the economist's thinking; It was far more accurate. This was helped by the fact that a group of scientists developed new mathematical models of economics and presented it to then US President Nixon and advised him to use the mathematical model. At the time, this method was justified and the world got sick with this mathematical modeling some even thought that economists were no longer needed and that mathematically it would be possible to calculate everything, but life has shown us that this is impossible. The works of various scientists are devoted to studies of these problems.

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