<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This paper explores the level of independence of the National bank of the Republic of Macedonia by primarily focusing on the legal provisions that pertain to the key aspects for achieving and maintaining price stability. It provides a historical perspective of the evolution of the independence since the first years of transition. The assessment of the independence of the NBRM is based on the index of Cukierman, Webb, and Neyapti (1992), as one of the most commonly used indices, and the index of Jacome and Vazquez (2005), which incorporates some specific aspects relevant for transition economies. Both indices indicate that the legal independence of the NBRM has increased over the years and that the current legal framework provides a high level of independence. Yet, it should be emphasized that there is a room for further strengthening, in particular in the areas of policy formulation and the process of appointment of the non-executive members of the council of the NBRM. As the indices are based on the legal provisions, they can serve only as an indication of the actual independence of the central bank.</p></abstract>

This paper explores the level of independence of the National bank of the Republic of Macedonia by primarily focusing on the legal provisions that pertain to the key aspects for achieving and maintaining price stability. It provides a historical perspective of the evolution of the independence since the first years of transition. The assessment of the independence of the NBRM is based on the index of Cukierman, Webb, and Neyapti (1992), as one of the most commonly used indices, and the index of Jacome and Vazquez (2005), which incorporates some specific aspects relevant for transition economies. Both indices indicate that the legal independence of the NBRM has increased over the years and that the current legal framework provides a high level of independence. Yet, it should be emphasized that there is a room for further strengthening, in particular in the areas of policy formulation and the process of appointment of the non-executive members of the council of the NBRM. As the indices are based on the legal provisions, they can serve only as an indication of the actual independence of the central bank.

Central Bank Independence - the Case of the National Bank of Republic of Macedonia

Macedonia (the former Yugoslav Republic of)

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

This paper explores the level of independence of the National bank of the Republic of Macedonia by primarily focusing on the legal provisions that pertain to...

Central Bank Independence - the Case of the National Bank of Republic of Macedonia

Published Online: Sep 23, 2017

Page range: 35 - 65

Received: Sep 06, 2016

Accepted: Oct 17, 2016

DOI: https://doi.org/10.1515/jcbtp-2017-0020

Keywords
central bank independence, monetary policy, indices, Macedonia

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Central Bank Independence - the Case of the National Bank of Republic of Macedonia

Published Online: Sep 23, 2017

Page range: 35 - 65

Received: Sep 06, 2016

Accepted: Oct 17, 2016

DOI: https://doi.org/10.1515/jcbtp-2017-0020

Keywordscentral bank independence, monetary policy, indices, Macedonia

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
central bank independence, monetary policy, indices, Macedonia