Analysis of currency exchange rate regime and its effect on economy in four post-soviet countries such as: Russia, Kazakhstan, Azerbaijan, Georgia

Exchange rate regimes are believed to have significant effect on economy of the countries, as they can directly affect trade, foreign investment and economic growth. Choice of an exchange rate regime is an important decision made by national monetary authorities. This paper will analyze how exchange rates and currency regime influenced GDP growth, inflation, exports& imports and foreign direct investment in selected four countries (Russia, Kazakhstan, Azerbaijan and Georgia) during 2007-17. Moreover, paper will try to explain reasons behind choice of particular regimes and whether they were sustainable and efficient for domestic economies. That said, main target of this thesis is to establish relationship between real effective exchange rates and before-mentioned economic indicators. Moreover, research will try to define how particular exchange rate arrangement influenced economies of the countries.