Economics at your fingertips  

What about monetary transmission in Albania? Is the exchange rate pass-through (still) the main channel?

Marga Peeters ()

MPRA Paper from University Library of Munich, Germany

Abstract: There seems to be a general perception that the exchange rate pass-through is the most important channel in the transmission process of monetary policy in Albania. This perception is questioned here in light of the altering relationships in this developing economy. A discussion on the transmission channels in the Albanian economy is followed by a study of the macro-economic relationships and pragmatic econometrics quantifying the monetary effectiveness. The results indicate that the dollar has become less important in the monetary transmission process at the benefit of the euro. There are moreover strong signs that the exchange rate channel as such is loosing its influence at the benefit of the other transmission channels, like the credit channel and most likely the wage channel.

Keywords: monetary policy; monetary transmission; exchange rate pass-through; interest rates (search for similar items in EconPapers)
JEL-codes: E52 E4 (search for similar items in EconPapers)
Date: 2005-03, Revised 2005-10-24
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) original version (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:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2020-04-30
Handle: RePEc:pra:mprapa:23671