THE TRANSMISSION MECHANISM AND CONSEQUENCES FROM THE GLOBAL ECONOMIC CRISIS FOR THE MACEDONIAN ECONOMY
AbstractThe global economic crisis had a a significant impact on many economies in the world, especially on the smallÂ and open economies where the transmission channels of the crisis had their own specifics. Therefore in thisÂ paper we try to analyze the transmission mechanism of the global crisis in a small and open economy - theÂ Republic of Macedonia, which reveals some key points in which this group of countries is extremely vulnerableÂ in terms of global distortions. The main transmission channels determined by the specific features of theMacedonian small and open economy are primarily the fall in global economic activity (especially the fall in theÂ economic activity of our main trade partners); the disturbance in international capital markets, the loss ofÂ investorsâ€™ confidence in markets and their risk aversion. The paper elaborates the main transmission channels,Â as well as their effects on almost every segment of the Macedonian economy: the real sector, financial sector,Â fiscal sector and the external sector.
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