Publication:
Comparing Constraints to Economic Stabilization in Macedonia and Slovakia : Macro Estimates with Micro Narratives

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dc.contributor.authorNajdov, Evgenij
dc.contributor.authorMelecky, Martin
dc.date.accessioned2012-05-31T20:19:40Z
dc.date.available2012-05-31T20:19:40Z
dc.date.issued2008-08
dc.description.abstractThis paper re-emphasizes the link from structural policies to enhanced macroeconomic stabilization using a small structural model estimated on quarterly data for Macedonia and Slovakia over 1995-2007. The success of macroeconomic stabilization, typically in the hands of monetary policy, is not only determined by a suitable choice of the nominal anchor, which shapes the reaction function of monetary policy, but also the constraints within which the monetary policy strives to achieve its objectives. The key attributes of the constraints to macroeconomic stabilization are economic rigidities and structural shocks. By benchmarking the estimated economic rigidities and structural shocks faced by Macedonia to those faced by Slovakia, the authors find that Macedonia has relatively weaker transmission mechanisms of monetary policy, higher output rigidity, and a lower exchange rate pass-through, and faces larger external shocks. For Macedonia, these relatively higher constraints on monetary policy together with the chosen exchange rate anchor result in greater output and inflation volatility relative to Slovakia. Hence, it appears that small, open economies with stronger economic rigidities should apply monetary policy regimes that allow for more flexible adjustments in external relative prices to enhance their macroeconomic stability.en
dc.identifierhttp://documents.worldbank.org/curated/en/2008/08/9762228/comparing-constraints-economic-stabilization-macedonia-slovakia-macro-estimates-micro-narratives
dc.identifier.doi10.1596/1813-9450-4691
dc.identifier.urihttps://hdl.handle.net/10986/6796
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper No. 4691
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVERSE EFFECTS
dc.subjectAGGREGATE DEMAND
dc.subjectAGGREGATE SUPPLY
dc.subjectARBITRAGE
dc.subjectBANKING SECTOR
dc.subjectBANKING SECTORS
dc.subjectBENCHMARK
dc.subjectBENCHMARKING
dc.subjectBILATERAL EXCHANGE RATES
dc.subjectBILL
dc.subjectCAPACITY CONSTRAINTS
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL GOODS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKET DEVELOPMENT
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL STOCK
dc.subjectCENTRAL BANK
dc.subjectCOMPETITION POLICY
dc.subjectCOMPETITIVENESS
dc.subjectCONSOLIDATION
dc.subjectCONSUMERS
dc.subjectCONSUMPTION GOODS
dc.subjectCONSUMPTION SMOOTHING
dc.subjectCORNER SOLUTIONS
dc.subjectCORRELATION COEFFICIENTS
dc.subjectCOVARIANCE MATRIX
dc.subjectCURRENCY APPRECIATION
dc.subjectDEBT
dc.subjectDEFLATION
dc.subjectDEPENDENT VARIABLE
dc.subjectDEPOSIT
dc.subjectDEPOSITS
dc.subjectDEPRECIATION
dc.subjectDEVALUATION
dc.subjectDISPOSABLE INCOMES
dc.subjectDOMESTIC CREDIT
dc.subjectDOMESTIC CURRENCY
dc.subjectDOMESTIC CURRENCY PRICE
dc.subjectDOMESTIC DEMAND
dc.subjectDOMESTIC ECONOMIC ACTIVITY
dc.subjectDOMESTIC ECONOMY
dc.subjectDOMESTIC INTEREST RATE
dc.subjectDOMESTIC INTEREST RATES
dc.subjectDOMESTIC MARKET
dc.subjectDUMMY VARIABLE
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMIC ENVIRONMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICY
dc.subjectECONOMIES OF SCALE
dc.subjectEFFECTIVE EXCHANGE RATES
dc.subjectELASTICITY
dc.subjectELASTICITY OF OUTPUT
dc.subjectENDOGENOUS VARIABLE
dc.subjectEQUILIBRIUM
dc.subjectEXCESS CAPACITY
dc.subjectEXCESS DEMAND
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATE ANCHOR
dc.subjectEXCHANGE RATE CHANNEL
dc.subjectEXCHANGE RATE INCREASE
dc.subjectEXCHANGE RATE PEG
dc.subjectEXCHANGE RATE RISK
dc.subjectEXCHANGE RATE SHOCKS
dc.subjectEXCHANGE RATE TARGETING
dc.subjectEXPECTED VALUE
dc.subjectEXPLANATORY VARIABLES
dc.subjectEXPORT DIVERSIFICATION
dc.subjectEXTERNAL POSITION
dc.subjectEXTERNAL SHOCK
dc.subjectEXTERNAL SHOCKS
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFISCAL SHOCK
dc.subjectFISCAL SHOCKS
dc.subjectFIXED EXCHANGE RATE
dc.subjectFIXED EXCHANGE RATE REGIME
dc.subjectFIXED EXCHANGE RATE REGIMES
dc.subjectFLEXIBLE EXCHANGE RATE
dc.subjectFLEXIBLE EXCHANGE RATE REGIME
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN INFLATION
dc.subjectFOREIGN INTEREST
dc.subjectFOREIGN INTEREST RATE
dc.subjectFOREIGN REAL INTEREST RATE
dc.subjectFUTURE INFLATION
dc.subjectGDP
dc.subjectGOVERNMENT BONDS
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectGOVERNMENT INVESTMENT
dc.subjectGOVERNMENT POLICIES
dc.subjectGOVERNMENT POLICY
dc.subjectGOVERNMENT SECURITIES
dc.subjectGROWTH POLICIES
dc.subjectIMPORT
dc.subjectIMPORT DEMAND
dc.subjectIMPORTS
dc.subjectINDEXATION
dc.subjectINDUSTRIAL ECONOMIES
dc.subjectINFLATION
dc.subjectINFLATION DYNAMICS
dc.subjectINFLATION EXPECTATIONS
dc.subjectINFLATION TARGETING
dc.subjectINFLATION TARGETING REGIMES
dc.subjectINSTRUMENT
dc.subjectINTEREST PARITY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE CHANGES
dc.subjectINTEREST RATES
dc.subjectINTEREST-RATE
dc.subjectINTEREST-RATE DIFFERENTIALS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL FINANCIAL STATISTIC
dc.subjectINTERNATIONAL FINANCIAL STATISTICS
dc.subjectINTERNATIONAL MONEY
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT DEMAND
dc.subjectLABOR FORCE
dc.subjectLABOR MARKETS
dc.subjectLIBERALIZATION
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLIVING STANDARDS
dc.subjectLOCAL CURRENCY
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC STABILITY
dc.subjectMACROECONOMIC STABILIZATION
dc.subjectMARGINAL COST
dc.subjectMARGINAL COST OF PRODUCTION
dc.subjectMARGINAL COSTS
dc.subjectMARKET ACCESS
dc.subjectMAXIMUM LIKELIHOOD METHOD
dc.subjectMONETARY AUTHORITY
dc.subjectMONETARY ECONOMICS
dc.subjectMONETARY POLICY
dc.subjectMONETARY POLICY REGIME
dc.subjectMONETARY POLICY REGIMES
dc.subjectMONEY MARKET
dc.subjectNATIONAL BANK
dc.subjectNET EXPORTS
dc.subjectNOMINAL ANCHOR
dc.subjectNOMINAL EXCHANGE RATE
dc.subjectNOMINAL INTEREST RATE
dc.subjectNOMINAL WAGES
dc.subjectOPEN ECONOMIES
dc.subjectOPEN ECONOMY
dc.subjectOPTIMIZATION
dc.subjectOUTPUT GAP
dc.subjectOUTPUT GAPS
dc.subjectOUTPUT RESPONSE
dc.subjectPER CAPITA INCOMES
dc.subjectPHILLIPS CURVE
dc.subjectPOLITICAL ECONOMY
dc.subjectPOTENTIAL OUTPUT
dc.subjectPOVERTY REDUCTION
dc.subjectPRICE COMPETITIVENESS
dc.subjectPRICE RIGIDITIES
dc.subjectPRICE STABILITY
dc.subjectPRODUCT MARKETS
dc.subjectPROFIT MARGINS
dc.subjectPROPERTY RIGHTS
dc.subjectRAPID GROWTH
dc.subjectRE-EXPORTS
dc.subjectREAL EFFECTIVE EXCHANGE RATE
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL GDP
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATE
dc.subjectRELATIVE PRICE
dc.subjectRELATIVE PRICES
dc.subjectREPO
dc.subjectREPO RATE
dc.subjectRISK PREMIUM
dc.subjectSECTOR REFORMS
dc.subjectSTANDARD DEVIATION
dc.subjectSTANDARD DEVIATIONS
dc.subjectSTEADY STATE
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKET CAPITALIZATION
dc.subjectSTRUCTURAL REFORMS
dc.subjectSTRUCTURAL SHOCKS
dc.subjectSUPPLY SHOCKS
dc.subjectT-BILLS
dc.subjectTAX REVENUES
dc.subjectTOTAL EXPORTS
dc.subjectTRADE INTEGRATION
dc.subjectTRADE POLICY
dc.subjectTRANSITION ECONOMIES
dc.subjectTRANSMISSION MECHANISM
dc.subjectTRANSMISSION MECHANISMS
dc.subjectUNCERTAINTY
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATE
dc.subjectVALUE ADDED
dc.subjectWEALTH
dc.subjectWEIGHTS
dc.subjectZERO WEIGHT
dc.titleComparing Constraints to Economic Stabilization in Macedonia and Slovakia : Macro Estimates with Micro Narrativesen
dspace.entity.typePublication
okr.crossref.titleComparing Constraints To Economic Stabilization In Macedonia And Slovakia: Macro Estimates With Micro Narratives
okr.date.doiregistration2025-04-10T12:25:52.593312Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2008/08/9762228/comparing-constraints-economic-stabilization-macedonia-slovakia-macro-estimates-micro-narratives
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid932821468303054125
okr.identifier.doi10.1596/1813-9450-4691
okr.identifier.externaldocumentum000158349_20080813094714
okr.identifier.internaldocumentum9762228
okr.identifier.reportWPS4691
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/08/13/000158349_20080813094714/Rendered/PDF/WPS4691.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countrySlovak Republic
okr.region.countryMacedonia, former Yugoslav Republic of
okr.region.countryNorth Macedonia (Formerly the Former Yugoslav Republic of Macedonia)
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicEconomic Theory and Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicationc2369c70-649c-4c08-a1c8-b1dcb7d123de
relation.isAuthorOfPublication.latestForDiscoveryc2369c70-649c-4c08-a1c8-b1dcb7d123de
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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