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

Abstract

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.