The purpose of this paper is to present the role of the exchange rate stability in a small and open economy, where the case of the Republic of Macedonia is investigated. Also, an accent is given to the role of the expectations of the economic agents for the future movements of the exchange rate,...

This paper investigates the monetary transmission mechanism in the Republic of Macedonia to better inform monetary policy, which is currently dedicated to price stability. We analyse long-run equilibrium relationships, adjustment mechanisms and short-run influences between the price level,...

The purpose of this paper is to present the role of the exchange rate stability in a small and open economy, where the case of the Republic of Macedonia is investigated. Also, an accent is given to the role of the expectations of the economic agents for the future movements of the exchange rate,...