Transmission of monetary policy in developing countries in conditions of global inflation groeth-The case of North Macedonia and Serbia

Monetary policy in coordination with fiscal policy is a key determinant for maintaining the macroeconomic
stability of countries through the creation of conventional and non-conventional measures in crisis situations. The
disruption of global supply chains and the limitation of the supply of oil and oil products resulted in a global
increase in inflation, from which developing countries were the most affected countries. Similarly, the Central
Banks undertook a series of measures aimed at cushioning the shock and returning inflation within the established
corridor. The subject of the research paper is an analysis of the effectiveness of monetary policy in the stabilization
of inflation in North Macedonia and Serbia. The purpose of the research is to evaluate the impact of monetary
measures on the economic flows of North Macedonia and Serbia through the transmission channels by applying
the SVAR model. The research was done using secondary methods and the SVAR model. According to the results
of the research, it can be concluded that North Macedonia and Serbia recorded a significant increase in inflation
caused by mostly global factors, and the monetary policy in both countries had a significant participation in the
stabilization of inflation and the macroeconomic situation.