Coincidence indicator for assessing the state of the business cycle in Republic of Macedonia
Coincidence indicator for assessing the state of the business cycle in Republic of Macedonia

Summary/Abstract: Assessing the state of the business cycle is a complex task that requires a lot of expertise. In developed countries special committees for business cycle dating (such as CEPR or NBER committees in the EU and the USA) are being formed and these committees inform the concerned public about the most recent business cycle developments. In developed countries can also find a plenitude of business cycle indicators developed for the purpose of presenting business cycle information in a way more apprehensible to the general public. However, in Balkan countries, except Croatia, neither business cycle committees nor business cycle indicators exist. Such a situation is thus ideal for the proliferation of irresponsible and populist economic policies that thrive when general public is uninformed about the actual state of the economy. Therefore, the tendency of this paper is to demonstrate and master the previously developed methodology applied by Croatia in order to be able to apply it in the future in the Republic of Macedonia, and thus to assess the business cycles through the construction and assessment of the coincident indicators. The obtained indicators will show the current phase of the cycle of the economy and what measures should be taken.

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