Review article
https://doi.org/10.32676/n.7.1.9
The Monetary policy in the Republic of North Macedonia and Republic of Albania during 2020
Shenaj Hadzimustafa
orcid.org/0000-0003-4391-3822
; South East European University, Republic of North Macedonia
Hyrije Abazi-Alili
orcid.org/0000-0002-6205-1431
; South East European University, Republic of North Macedonia
Abstract
Globally, the COVID-19 pandemic crisis is considered as one of the worst global recessions in history, caused
by non-economic factors such as the coronavirus pandemic. The pandemic crisis has increased the financial
stability and vulnerability across different markets and sectors. These changes required the central banks,
governments, and other authorities to take a variety of policy assistance steps to help limit immediate
financial stability threats. The goal of this study is to examine how the monetary policies of the Republic of
North Macedonia and Republic of Albania, as one of the two key macroeconomic policies, have reacted in
response to COVID 19 for the year 2020. This study looks at how the central banks of both countries have
altered conventional and unconventional monetary policy tools to combat the pandemic. The analysis is
based on the data published by the monetary officials in both countries. The results show that interbank
interest rates in the Republic of North Macedonia and Republic of Albania were reduced from 2.00% to
1.50% and from 1.00% to 0.50%, respectively, while overnight loan interest rates were reduced from 2.50%
to 2.00% and from 1.90% to 0.90%, respectively. An overview of the unconventional measures is also
presented.
Keywords
monetary policy, central bank, conventional monetary tools, unconventional monetary tools
Hrčak ID:
272002
URI
Publication date:
13.12.2021.
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