Inflation and Money Demand in Albania
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Summary:
The paper uses a simple analytical framework to estimate relationships between prices, money the exchange rate, and interest rates in Albania during 1993–97. The estimated parsimonious error correction model extends the findings of a growing literature on inflation and money demand in transition economies. The results suggest that, after the one-time effects of the 1997 crisis are taken into account, the long-run determinants of inflation and money demand remained unchanged. Strong financial policies since mid—1997 appear to have helped to restore conditions for low inflation and stable money demand.
Series:
Working Paper No. 1998/101
Subject:
Demand for money Depreciation Exchange rates Foreign exchange Inflation Money National accounts Prices Real exchange rates
English
Publication Date:
July 1, 1998
ISBN/ISSN:
9781451948585/1018-5941
Stock No:
WPIEA1011998
Pages:
34
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