The impact of monetary policy and exchange rate regime on real GDP and prices in the Republic of Macedonia
Year: 2010
Type: article
Abstract: This paper investigates the relative costs and benefits associated with introducing a more active monetary and a different exchange rate regime in the Republic of Macedonia. In this finding, the econometrics result show that introducing a more active monetary policy and a different strategy of the exchange rate targeting in order to promote rapid economic growth could easy disturb macroeconomic stability (after having achieved it at a substantial cost) without any significant economic benefits. Therefore, introducing a more active monetary policy and a different strategy of the exchange rate regime is likely to incur more costs than benefits, since changes of the monetary policy and exchange rate regime type do not show a persistent effect on real GDP, while changes of money stock and exchange rate regime do show a strong and persistent effect on prices level.
Source: Economic and business review
Authors: Besnik Fetai, Zeqiri Izet
Institution: South East European University
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W1951197671