Estimating the Determinants of Financial Euroization in Albania
Olta Manjani ()
Additional contact information
Olta Manjani: Bank of Albania
No 07-2015, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies
Abstract:
This paper examines the phenomenon of financial euroization in Albania, focusing on the liability side of the banking system. It explores some of the main theoretical and empirical determinants of deposit euroization in the context of the high euroization rates originating in the transition period of the early 1990s. Despite gradual improvements in the macroeconomic framework, euroization rates have continued to be persistent throughout, long after the reversal of the original triggers of such phenomenon. The high level of euroization entails policy relevant concerns for euroized economies, as it has been shown to have potential adverse effects on macroeconomic policies and financial stability, issues of vital importance for a central bank. Using a VAR framework to capture the simultaneous dynamic relationships between macroeconomic aggregates, this paper finds evidence that euroization rates are highly persistent in Albania, while being influenced by several factors such as interest rate differentials, exchange rates, and credit euroization
Pages: 28 pages
Date: 2015-03-14
New Economics Papers: this item is included in nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIDWP07-2015.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:gii:giihei:heidwp07-2015
Access Statistics for this paper
More papers in IHEID Working Papers from Economics Section, The Graduate Institute of International Studies Contact information at EDIRC.
Bibliographic data for series maintained by Dorina Dobre ().