The primary objective of the Bank of Lithuania is to maintain price stability. In pursuit of this objective, the Bank of Lithuania conducts regular monitoring and analysis of the current macroeconomic developments and prepares medium-term macroeconomic projections.
Economic research is an important ingredient in these processes. It enhances the staff expertise on the domestic monetary policy transmission mechanism as well as broadens its general knowledge about the business cycle and the long-term growth features of the Lithuanian economy.
The Bank of Lithuania performs stress testing of the financial system. Its main goal is to identify the largest potential threats to stability of the domestic financial system and to assess its capability of withstanding the effects of unfavourable internal and external shocks. The Financial Stability Review is prepared and published once a year. It presents an analytical assessment of the domestic financial system with focus on the situation in the domestic banking system and its debtors—households and non-financial institutions.
The Bank of Lithuania also prepares economic development forecasts and presents them to the public. Such forecasts are usually prepared for two-year periods and cover the key economic indicators, such as gross domestic product, inflation, current account deficit, unemployment rate, etc. Economic development forecasts present the most likely scenario of economic development based on certain assumptions.
The main research activities take place in the Economics Department of the Bank of Lithuania. Research activities are carried out in co-operation with other domestic and foreign institutions, academic and research institutions and centres. There is also a Visiting Researches Program, which creates opportunities to carry out research on the Lithuanian economy and strengthen the interaction of the Bank staff members with the research community outside the Bank. Researchers willing to conduct research at the Bank of Lithuania, either on an individual basis or in cooperation with the staff of the Bank, are invited to take part in the program. In co-operation with other Lithuanian and foreign research-conducting institutions, the Bank of Lithuania organizes scientific seminars and conferences.
The Bank of Lithuania publishes the academic journal Monetary Studies, which presents scientific and survey articles by Lithuanian and foreign authors on the development of economy, finance, money and banking, the simulation and forecasting of macroeconomic processes, as well as topicalities, scientific comments and reviews of scientific works. The largest focus is given to the topicality and scientific value of publications, the thematic variety of a publication.
According to Order No.390 of the Director of the Science and Studies Department of the Republic of Lithuania’s Ministry of Education and Science, the publication of Monetary Studies has been included into the List of Scientific Publications of Lithuania Recognised for the Doctor’s Dissertation and Habilitation.
Also, working papers—initial versions of scientific papers which can be supplemented and specified after readers’ observations and assessments, in case of new documents or suggestions—are available on the Bank of Lithuania’s website.