Euroization Drivers and Effective Policy Response : An Application to the case of Albania /

This paper proposes a methodology to develop empirically based and theoretically consistent deeuroization policies. It is derived from the experience of Albania. The paper is the first attempt to provide an empirical measure of the optimal level of euroization. The results indicate that euroization...

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Podrobná bibliografie
Hlavní autor: della Valle, Guido
Další autoři: Cabezon, Ezequiel, Kota, Vasilika, Veyrune, Romain
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2018.
Edice:IMF Working Papers; Working Paper ; No. 2018/021
On-line přístup:Full text available on IMF
Popis
Shrnutí:This paper proposes a methodology to develop empirically based and theoretically consistent deeuroization policies. It is derived from the experience of Albania. The paper is the first attempt to provide an empirical measure of the optimal level of euroization. The results indicate that euroization is trending above the estimated measure in Albania, calling for deeuroization policies. In the long term, deeuroization requires maintaining the commitment to low and stable inflation in a context of greater exchange rate flexibility to encourage saving in local currency. In the short term, policies that mitigate the financial stability risk due to euroization contribute to deeuroization inasmuch as they make banking intermediation in euro less financially attractive to the public.
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Fyzický popis:1 online resource (30 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students