EFFECTS OF THE APPLICATION OF TARGETING THE EXCHANGE RATE POLICY IN MACEDONIA
The monetary system and monetary – credit policy in the Republic of Macedonia were built after the country gained independence from the previous federal community, when Macedonia faced problems such as: termination of many plants, increase in unemployment, increase in budget and foreign trade defi...
Main Authors: | , , |
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Format: | Article |
Language: | English |
Published: |
Academica Brâncuşi
2016-02-01
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Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
Subjects: | |
Online Access: | http://www.utgjiu.ro/revista/ec/pdf/2016-01/25_Krume.pdf |
Summary: | The monetary system and monetary – credit policy in the Republic of Macedonia were built after the country
gained independence from the previous federal community, when Macedonia faced problems such as: termination of
many plants, increase in unemployment, increase in budget and foreign trade deficit as well as high inflation rate. The
macroeconomic stability narrowly understood as reducing the inflation rate, was the first measure of the economic
policy, undertaken along with the monetary independence of Macedonia.
In a small and open economy, the exchange rate policy has particular importance in the control of the
inflation rate and beyond: in the real economic trends. The strategy of targeting the denar exchange rate was accepted
and applied with the expectation that it would act in that direction, hence the monetary policy was focused on
maintaining fixed exchange rate against the euro. The determination of the country to join the European Union and to
become a member of other international financial organizations is yet another reason for choosing this strategy. |
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ISSN: | 1844-7007 1844-7007 |