IDEAS home Printed from https://ideas.repec.org/p/ukc/ukcedp/9613.html

Inflation and Stabilization in Albania

Author

Listed:
  • Sulo Haderi
  • Harry Papapanagos

  • Peter Sanfey

  • Mirela Talka

Abstract

This paper analyses the determinants of inflation in Albania during the transition period. We attempt to explain how albania has been so successful in reducing inflation to a level comparable to many countries in the European Union. We discuss the relative importance of monetary, fiscal, and external variables, and in particular, we highlight the role of remittances and private transfers by emigrants. Using vector autoregression analysis, we demonstrate how shocks to remittances affect the subsequent paths of inflation and the exchange rate. Our main conclusion is that, while there are important lessons from the Albanian experience for other ex-communist countries, the presence of large-scale emigration and huge remittance flows make Albania unique among European countries in transition, to the extent that these factors aided the anti-inflation programme.

Suggested Citation

  • Sulo Haderi & Harry Papapanagos & Peter Sanfey & Mirela Talka, 1996. "Inflation and Stabilization in Albania," Studies in Economics 9613, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:9613
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Niaz Hussain Ghumro & Mohd Zaini Abd Karim, 2017. "The Role Of Remittances In The Stability Of Money Demand In Pakistan: A Cointegration Analysis," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(213), pages 45-66, April - J.
    2. Muco, Marta & Papapanagos, Harry & Sanfey, Peter, 1999. "The Determinants of Official and Free-Market Exchange Rates in Albania during Transition," Journal of Comparative Economics, Elsevier, vol. 27(3), pages 534-552, September.
    3. Ali Termos & Ismail Genc & George Naufal, 2016. "A Tacit Monetary Policy of the Gulf Countries: Is There a Remittances Channel?," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 599-610, May.
    4. Dabalen,Andrew L. & Kilic,Talip & Wane,Waly & Dabalen,Andrew L. & Kilic,Talip & Wane,Waly, 2008. "Social transfers, labor supply and poverty reduction : the case of Albania," Policy Research Working Paper Series 4783, The World Bank.
    5. Lisa Arrehag & Orjan Sjoberg & Mirja Sjoblom, 2005. "Cross-border Migration and Remittances in a post-communist society: Return flows of money and goods in the Korce district, Albania," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 3(1), pages 9-40.
    6. Dirk J. Bezemer, 1999. "Post-Socialist Financial Fragility: the Case of Albania," Tinbergen Institute Discussion Papers 99-045/2, Tinbergen Institute.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ukc:ukcedp:9613. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr Anirban Mitra (email available below). General contact details of provider: https://www.kent.ac.uk/economics/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.