Monetary policy effectiveness in the context of global inflation growth: Evidence from North Macedonia

Filip Taskovski; Vlatko Paceskoski

doi:10.71159/icemit2508T

Authors

Filip Taskovski Goce Delcev University, Stip, Faculty of Economics, N. Macedonia
Vlatko Paceskoski Goce Delcev University, Stip, Faculty of Economics, N. Macedonia

DOI:

https://doi.org/10.71159/icemit2508T

Keywords:

monetary policy, inflation, global shocks, macroeconomic stability, North Macedonia

Abstract

Monetary policy, in interaction with fiscal policy, is a central instrument for ensuring macroeconomic stability, especially in periods of heightened global inflationary pressures. The recent global surge in prices, largely triggered by disruptions in supply chains and the restricted availability of oil and energy products, has significantly affected small and open economies. North Macedonia represents a particularly relevant case, as its high external dependency has amplified the transmission of global shocks into domestic price dynamics. This study investigates the effectiveness of monetary policy in stabilizing inflation and safeguarding macroeconomic balance in North Macedonia. The analysis focuses on the transmission channels through which monetary measures operate and evaluates the extent to which domestic policy responses mitigate external inflationary pressures. The findings reveal that while inflationary trends were predominantly driven by global factors, monetary policy interventions contributed meaningfully to cushioning adverse effects, supporting price stability, and preserving the broader macroeconomic framework.

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