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Inflation, its Dynamics, and its Possible Causes in Albania

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Author Info
Kunst, Robert M. (Institute for Advanced Studies, Vienna)
Luniku, Rubin (Bank of Albania)

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Abstract

This paper attempts to analyze the causes of the inflationary developments in Albania in the years 1994-1997 with the help of econometric methods. We consider monetary and fiscal expansion, imported inflation, and direct demand pull as possible causes. Except for significant effects of direct demand pull and of exchange rate devaluation, the statistical results give only moderate support to the classical economic causes. Seen this way, Albanian inflation appears to be mainly determined by its own expectations and by singular political events.

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File URL: http://www.ihs.ac.at/publications/eco/east/ro-57.pdf
File Format: application/pdf
File Function: First version, 1998
Download Restriction: no

Publisher Info
Paper provided by Institute for Advanced Studies in its series East European Series with number 57.

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Length: 35 pages
Date of creation: Sep 1998
Date of revision:
Handle: RePEc:ihs:ihsrop:57

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Related research
Keywords: Transition economy; Causality; Coitegration; Consumer price index;

Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

Statistics
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This page was last updated on 2009-12-9.

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