Macroeconomic dynamics in Macedonia and Slovakia: Structural estimation and comparison

► Estimated monetary policy rules show Macedonia and Slovakia as inflation targeters. ► Macedonia is the more conservative one, despite official exchange rate targeting. ► Macroeconomic volatility in Slovakia is most influenced by monetary policy shocks. ► Exchange rate, policy and demand shocks are key drivers of volatility in Macedonia. ► Macedonia enjoys lower output/inflation volatility with higher interest/exchange rate volatility.