Reducing Inflation: Lessons From Albania's Early Success

C. McNeilly and Doris Schiesser-Gachnang

No 1998/078, IMF Working Papers from International Monetary Fund

Abstract: Inflation in Albania fell rapidly once comprehensive stabilization policies and market-oriented reforms were launched, in contrast to other transition economies, where price liberalization was generally followed by persistently high inflation. The early reduction of underlying inflation is confirmed by trimmed mean estimates of core inflation, which use a central portion of the commodity-wise inflation distribution. This also demonstrates the usefulness of estimating core inflation for transition economies. The early success in curbing inflation is attributed to the extremely broad scope of initial price liberalization coupled with key supporting measures. It also gives hope for early recovery from Albania’s 1997 economic crisis.

Keywords: WP; price; price liberalization; CPI; Albania; inflation; recovery level; inflation in Albania; mortgage cost; food price development; inflation distribution; price subsidy; services price development; underlying inflation; price variability; price signal; price movement; Price controls; Consumer price indexes; Price adjustments; Consumption; Eastern Europe; Baltics; Europe (search for similar items in EconPapers)
Pages: 49
Date: 1998-05-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=2632 (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:imf:imfwpa:1998/078

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().