The role of monetary policy during the global financial crisis - the case of North Macedonia

The global financial crisis that arose as a result of the fall in real estate prices in
the United States, the enormous increase of borrowers who owned a mortgage loan
that could not repay and the bankruptcy of the Lehman brothers as a symbol of the
crisis caused a significant destabilization of the financial markets and a drastic
decline of stock exchange activities both in the USA and in other economies in the
world. In order to stabilize economies from the global transmission of the crisis,
governments and central banks created a series of fiscal and monetary measures.
Although a large number of economists from the Keynesian provenance indicate
the importance of the role of fiscal policy in the stabilization of economies during
the crisis, empirical research indicates the significance of monetary measures in
the domain of increasing the liquidity of the financial sector and stabilizing
macroeconomic flows.
The subject of the research paper is the role of the monetary policy and the
measures of the National Bank of North Macedonia created during the global
financial crisis in the direction of stabilizing the Macedonian economy.
The purpose of the research paper is to examine the effects of monetary measures
and policies on the key economic indicators of North Macedonia.
The research paper is based on secondary methods and is composed of
descriptive statistics, correlation analysis, trend analysis and regression analysis.
Based on the research, it can be concluded that North Macedonia, as a small and
open economy, volatile to international economic trends, notes certain effects of
the global crisis, while the National Bank of North Macedonia resorted to adapting
the monetary policy in the direction of sterilization of the effects of the crisis and
stabilization of the macroeconomic situation.
Key words
Global financial crisis, interest rate, macroeconomic stabilization, monetary policy, National bank
of North Macedonia.