Bank of Lithuania

Economic research

Economic research at the Bank of Lithuania is primarily conducted at two units, namely, the Center for Excellence in Finance and Economic Research (CEFER) and the Applied Macroeconomic Research Division (TMTS), which is part of the Economics Department. The main aim of CEFER is to conduct and publish high-quality academic research and contribute to knowledge at the forefront of economic and financial research. The TMTS aims in particular at conducting economic and financial research with direct importance for central banking and policy-making.


Research priorities

Economists at CEFER conduct academic research and publish their papers in well-reputed scientific journals. Main research topics include the following:

  • Macrofinance
  • Behavioural macroeconomics and finance
  • International economics and finance
  • Macroeconometric methods and modelling
  • Dynamic Stochastic General Equilibrium (DSGE) models
  • Experimental economics
  • Labour economics

Priority areas at the TMTS are determined on the basis of the demand for sound economic analysis, forecasting and decision-making in the areas of monetary policy, exchange rates and financial stability, as well as in the light of the Bank’s cooperation with the European System of Central Banks (ESCB). The four priority research areas are as follows:

  • Monetary and fiscal policy
    • inflation
    • monetary policy transmission mechanism
    • automatic fiscal stabilisers and fiscal rules
  • Modelling and forecasting
    • development and estimation of the DSGE model for Lithuania
    • short-run forecasting models
  • Convergence research
    • long-run trends and equilibrium values
    • structural changes in aggregate supply
  • Financial stability
    • liquidity risk in the banking sector
    • credit risk in the banking sector
    • development of the macro stress testing model
    • international contagion risk


Last update: 19-07-2018