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 of 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.

Goal

The main goal of research activities at the Bank of Lithuania is to provide sound analytical support to the Bank’s decisions concerning monetary policy, exchange rate and financial stability issues, to ensure competent participation of the Bank in the European System of Central Banks and its representation at international forums, as well as to develop and maintain the human capital of the Bank of Lithuania.

Organization of Research

The main research activities take place in the Economic Research Division (ERD) of the Economics Department. The ERD is responsible for planning research activities at the Bank as well as the preparation and dissemination of research. It prepares “Guidelines to Economic Research at the Bank of Lithuania” and “Annual Report on Research Activities at the Bank of Lithuania”, implements Visiting Researchers’ Program, publishes the journal “Monetary Studies” and the Working Papers of the Bank of Lithuania. ERD research activities are conducted predominantly within applied fundamental research projects requiring up-to-date knowledge on the economic theory and research methods as well as sufficient experience in the application of those methods. The ERD cooperates with other business units of the Bank of Lithuania, other domestic and foreign institutions, academic and research institutions and centers. Economic research is also carried out in other divisions of the Economics Department, namely, the Macroeconomic and Forecasting Division and the Financial Stability Division. However, contrary to the ERD, research activities in these divisions are closely linked to meeting the daily needs of economic analysis and forecasting.

Dissemination of Research Activities of the Bank of Lithuania to General Public

Dissemination of research activities of the Bank of Lithuania to general public is conducted mainly through the website of the Bank of Lithuania. While the public exposure of the Bank’s research activities increases transparency of the organization, it is also expected that it will motivate economic research outside the Bank in the areas prioritized by the Bank of Lithuania.