Taseska, Tamara and Hristoski, Ilija (2025) Understanding Inflation Drivers in North Macedonia: An Econometric Analysis. New Horizons - Journal of Student Research, 2 (1). pp. 91-103. ISSN ISSN: 2955-2354, e-ISSN: 2955-2362
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Abstract
Inflation plays a key role in a country’s economy, especially in terms of its economic stability and growth. Understanding its determinants is essential for formulating effective policies. This paper analyzes the factors influencing the rate of inflation in the Republic of North Macedonia in the period 2002-2023. The objective is to identify and assess the impact of the money supply (M2), the real effective exchange rate of the Macedonian denar (MKD), and the unemployment rate (independent variables) on the inflation rate (dependent variable) in the analyzed period. In the paper, a statistical analysis was performed that identified the possible correlations between the dependent variable and the three independent variables. Also, econometric modeling and evaluation of the model were performed using the ordinary least squares (OLS) linear regression method. The results of the research have been properly interpreted, and relevant conclusions have been drawn based on that. This research is particularly useful for economists, policymakers, and the Central Bank of the country, as it provides insights into inflation dynamics. Based on this information, they will be able to develop and implement appropriate monetary policies to control and manage the economy, which is crucial for achieving economic stability and growth.
| Item Type: | Article |
|---|---|
| Subjects: | Scientific Fields (Frascati) > Social Sciences > Economics and Business |
| Divisions: | Faculty of Economics |
| Depositing User: | Prof. Dr. Ilija Hristoski |
| Date Deposited: | 12 May 2025 07:49 |
| Last Modified: | 12 May 2025 07:49 |
| URI: | https://eprints.uklo.edu.mk/id/eprint/10906 |
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