Skopje, 15 April 2022
The maintenance of price stability has to be in the monetary policy focus, and thus in the focus of the overall macroeconomic stability, which make its best contribution to the economy. This was pointed out by the Governor of the National Bank, Anita Angelovska Bezhoska, at the panel discussion “Maintaining domestic growth amid post-pandemic balancing, price pressures and Ukraine war” within the Economic Forum organized by “Finance Think”.
Speaking of how to support the economic growth, and at the same time stabilize the inflation caused by the war conflict in Ukraine, the Governor points out the particular significance of the coordinated fiscal and monetary policy. Fiscal measures could mitigate the transmission of the global growth of energy prices on the prices of consumer goods in the short term, and to a certain extent, to compensate the losses in the income of the most vulnerable categories. On the other hand, the monetary policy should be directed towards maintaining price and macroeconomic stability.
In the medium term, after the stabilization of the situation, gradual fiscal consolidation is needed, particularly focusing on the structural reforms which should reduce the vulnerability of the economy, yet increase its resilience and growth potential.
“It is generally known that macroeconomic policies, and monetary policy in particular, cannot be a substitute for thorough structural reforms. Only structural reforms can discover the points of vulnerability of economies, improve the bases and increase the growth potential, and thus the protection against future possible shocks” said the Governor.
The panel discussion, in addition to the Governor of the National Bank, also included the Minister of Finance, Fatmir Besimi, the IMF Regional Resident Representative for the Western Balkans, Stephanie Eble and the Manager of the World Bank Office in the country, Massimiliano Paolucci.