The role of money as an important pillar for monetary policy: the case of Albania

Gerti Shijaku ()

MPRA Paper from University Library of Munich, Germany

Abstract: The main focus of this paper is to appraise the money demand function and the velocity of broad money, M3, in the medium and long-term, given its role as a second pivotal pillar for the monetary policy of the Bank of Albania, in accordance with its primary objective, that of price stability. The results show that the demand for money is stable, even in the aftermath of global financial crisis, as well as its performance contains important information for the inflation trend.

Keywords: Monetary policy; quantitative theory; Phillips curve; reference value; VECM; P-STAR approach (search for similar items in EconPapers)
JEL-codes: C32 C51 C52 E31 E41 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:79088

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