The impact of the Global Crisis 2007-2009 on the financial system of the Republic of Macedonia

Abstract

The Global Financial Crisis of 2007-09 threw the world in one of the most severe nosedives for decades. Developed and robust economies tumbled, cascading negative effects in the emerging world. While certain developed economies such as Iceland’s crumpled, other, like the Greek, still teeter on the brink of collapse. Yet, the economy of the Republic of Macedonia, as fragile and structurally inept as it seems, still managed to survive the crisis’ lethal blow. This paper attempts to examine the causes of this paradox by shortly introducing the specifics of the Macedonian financial system, and later analyzing the behavior of three select variables before, during, and after the crisis.