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Euroisation in Albania: From Spontaneous to Consensual

Author

Listed:
  • Erjon Luci
  • Marta Muco
  • Elvira Sojli

Abstract

In this paper, we present a new estimation of the euroisation level of the Albanian economy taking into account both foreign deposits and foreign currency in circulation. We implement a recent novel methodology to calculate foreign currency in circulation. It is found that the overall level of euroisation including this often unaccounted measure is approximately 45 percent of total money. We also try to investigate some of the implications the re-estimated level of euroisation has on the actual monetary policy and the future path towards EMU.

Suggested Citation

  • Erjon Luci & Marta Muco & Elvira Sojli, 2006. "Euroisation in Albania: From Spontaneous to Consensual," wiiw Balkan Observatory Working Papers 71, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:071
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    References listed on IDEAS

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    Cited by:

    1. Edlira Narazani, 2013. "A Micro Level Perspective of Euroization in Albania," wiiw Balkan Observatory Working Papers 109, The Vienna Institute for International Economic Studies, wiiw.
    2. Olta Manjani, 2015. "Estimating the Determinants of Financial Euroization in Albania," IHEID Working Papers 07-2015, Economics Section, The Graduate Institute of International Studies.
    3. World Bank, 2010. "Albania - The New Growth Agenda : A Country Economic Memorandum," World Bank Publications - Reports 2935, The World Bank Group.

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