This paper aims at reviewing the work done towards developing quantitative measures of financial stability in Macedonia. The approach to the development of these measures concerns the macro-prudential dimension of financial stability. Constructing a single indicator to indicate the level of...

This paper aims at reviewing the work done towards developing quantitative measures of financial stability in Macedonia. The approach to the development of these measures concerns the macro-prudential dimension of financial stability. Constructing a single indicator to indicate the level of...

This paper uses a sectoral version of conventional Imperfect substitutes model to motivate a parsimonious estimation of trade elasticities. The elasticities we compute depend directly on the specialization of trade across sectors, which is believed to add econometric precision to our estimates....

This paper aims at assessing the usefulness of leading indicators in business cycle research and forecast. Initially we test the predictive power of the economic sentiment indicator (ESI) within a static probit model as a leading indicator, commonly perceived to be able to provide a reliable...

Okun’s law is one of the most widely-known stylized facts in the macroeconomic literature and policy. In this paper we study several aspects of Okun’s law in Macedonia between 2004 and 2016. Aggregate indicators show a link between output and unemployment that is in line with other emerging...

This study investigates the degree of economic integration that the group of selected South East European countries have achieved with the euro area. The evidence of this study suggests that all four selected South East European economies are in sync with the euro area cycle, and respectively...

This paper has adopted a Bayesian FAVAR approach to examine the monetary transmission mechanism in North Macedonia. The model is based on a broad data set that encompasses 140 monthly time series spanning between January 2010 and January 2019. In particular, the impact of policy on bank...