International Conference on Eurasian Economies
1-3 July 2014 – Skopje, MACEDONIA
Paper detail
Paper ID : 1122
Status : Paper published
Language : English
Topic : Finance and Financial Crises
Presenter: Ph.D. candidate Vesna Kondratenko
Session : 3B Finance II
Central Banks on the Cross Roads - The Case of Macedonia
Central Banks on the Cross Roads - The Case of Macedonia
- Prof. Dr. Ljube Trpeski (Ss. Cyril and Methodius University, Macedonia)
- Dr. Bogoljub Jankoski (National Bank, Macedonia)
- Ph.D. candidate Vesna Kondratenko (National Bank, Macedonia)
Abstract
We focus on the use of unconventional measures implemented during the financial crisis and their impact on operational efficiency and independence of the central banks, including the National bank of Republic of Macedonia (NBRM). Measuring the impact of the new policies on the independence and operational efficiency of the central banks, we try to assess their capacity to maintain the price stability as primary monetary policy objective. In the paper the following methods are used: quantitative method, comparative method, particularly in comparison of the level of operational efficiency and the independence of central banks, as well as econometric method applied in operational efficiency analysis of the selected group of countries (developed, developing countries and countries in transition). As the other central banks, NBRM face the challenge to preserve its role in maintaining price and financial stability and economic strength of the country, without jeopardizing its independence. During the crisis, in coordination with other economic policies, NBRM succeeded to maintain macroeconomic stability and contributed to the mitigation of internal and external economic shocks. Also, NBRM managed to keep very high level of its legal and factual independence, measured by the standard indicators. However, the achievement of these multiple goals, resulted in decrease in the level of its operational efficiency, as it was case with the other central banks analyzed in this paper. Main message is that central banks have to undertake coordinated measures to fulfill their goals but also to take some measures to improve optimal level of efficiency.
JEL codes: E52, E58
Trpeski, Ljube, Jankoski, Bogoljub, Kondratenko, Vesna (2014). "Central Banks on the Cross Roads - The Case of Macedonia" in Proceedings of International Conference of Eurasian Economies 2014, pp.323-332, Skopje, MACEDONIA.
DOI: https://doi.org/10.36880/C05.01122
