Monetary Policy Response in the Republic of North Macedonia and the Republic of Albania for Coping with the Pandemic COVID-19 in 2020
DOI:
https://doi.org/10.54820/SBYM9385Keywords:
monetary policy, central bank, traditional tools, non-traditional tools, interbank interest rateAbstract
This study aims to analyse how the monetary policies of the Republic of North Macedonia and the Republic of Albania, as one of the two critical macroeconomic policies, have reacted in response to COVID-19 for the year 2020. Last year, the year 2020, the pandemic caused these two countries to react through monetary policy. This research examines how central banks of both countries have changed traditional monetary policy tools for tackling the pandemic, starting with open market operations, required reserve ratio, the overnight loans interest rate, and the available deposits interest rate. The research continues with analyzing whether they were used and what non-traditional tools were applied in that period. The study analysis concludes which monetary policies have been pursued in the Republic of North Macedonia and the Republic of Albania, whether there have been non-traditional tools and how the scope for interbank interest rate volatility has changed. Our study revealed that both countries had pursued an expansive monetary policy, there were also non-traditional tools, and the scope for interbank interest rate volatility has shifted towards narrowing.
References
Amadeo, K. (2021), “The balance”, available at: https://www.thebalance.com/monetary-policy-tools-how-they-work-3306129 (01 June 2021)
Bank of Albania (2020a), “NJOFTIM PËR SHTYP: Fjala e Guvernatorit Sejko në konferencën për shtyp për vendimmarrjen e politikës monetare, 7 tetor 2020” (“PRESS CONFERENCE: Speech of Governor Sejko at the press conference on monetary policy decision-making, October 7, 2020”), available at: https://www.bankofalbania.org/Shtypi/Fjalime_intervista_artikuj/Fjalime/Fjala_e_Guvernatorit_Sejko_ne_konferencen_per_shtyp_per_vendimmarrjen_e_politikes_monetare_7_tetor_2020.html (01 April 2021)
Bank of Albania (2020b), “COVID-19”, available at: https://www.bankofalbania.org/Press/COVID-19/ (01 April 2021)
Bank of Albania (2020c), “Bank of Albania”, available at: https://en.wikipedia.org/wiki/Bank_of_Albania (01 June 2021)
Bank of Albania (2020d), “Rezerva e Detyruar” (“Compulsory Reserve”), available at: https://www.bankofalbania.org/Politika_Monetare/Instrumentet/Rezerva_e_Detyruar/ (01 June 2021)
Bank of Albania (2020e), “On the order of the Bank of Albania and the Prime Minister on the extension of the deadline of payment of loans to enterprises and households”, available at: https://www.bankofalbania.org/Press/On_the_order_of_the_Bank_of_Albania_and_the_Prime_Minister_on_the_extension_of_the_deadline_of_payment_of_loans_to_enterprises_and_households.html (01 June 2021)
Bank of Albania (2021), “Brief history of Bank of Albania”, available at: https://www.bankofalbania.org/About_the_Bank/Brief_history_of_Bank_of_Albania/ (01 March 2021)
Friedman, B. M. (2015), “Monetary Policy since the 2007–2009 Financial Crisis”, in International Encyclopedia of the Social & Behavioral Sciences, pp. 727-734.
Kenton, W. (2021), “Investopedia”, available at: https://www.investopedia.com/terms/n/nonstandard-monetary-policy.asp#:~:text=Traditional%20monetary%20policies%20include%20the,adjustments%2C%20and%20negative%20interest%20rates (01 March 2021)
Loayza , N. V., Pennings, S. (2021), “Macroeconomic Policy in the Time of COVID-19”, available at: https://www.nbrm.mk/ns-newsarticle-soopstenie-1832020-al.nspx (01 April 2021)
NBRM (2020a), “Monthly weighted average interest rate on Central Bank bills auctions“, available at: https://www.nbrm.mk/mesecni-ponderirani-kamatni-stapki-na-blagajnickite-zapisi-en.nspx (01 June 2021)
NBRM (2020b), “Reserve requirement”, available at: https://www.nbrm.mk/zadolzhitielna_rezerva-en.nspx (01 April 2021)
NBRM (2020c), “Deposit Facility”, available at: https://www.nbrm.mk/raspolozhlivi_diepoziti-en.nspx (01 June 2021)
NBRM (2020d), “Banka Popullore është duke arritur me sukses qëllimet e saj dhe sistemi bankar është i përgatitur për t’u marrë me krizën e koronës” (“The National Bank is successfully achieving its goals and the banking system is prepared to deal with the corona crisis”), available at: https://www.nbrm.mk/ns-newsarticle-soopstenie-2942020-al.nspx (01 April 2021)
Smaghi, L. B. (2009), “Conventional and Unconventional Monetary Policy”, available at: https://www.bis.org/review/r090429e.pdf (01 June 2021)
World Bank (2021), “Western Balkans regular economic report”, available at: https://www.worldbank.org/en/region/eca/publication/western-balkans-regular-economic-report (01 June 2021)
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 ENTRENOVA - ENTerprise REsearch InNOVAtion
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
