Session

Management, Business, and Economics

Description

Transformation from a centrally planned economy to a market economy was accompanied by a number of reforms such as the efforts to fully liberalize prices and the creation of a two-level banking system. To achieve this goal there was the need to include the monetary policy as one of the main macroeconomic policies. The law on “the Bank of Albania” defined the competence of BoA to draft and implement the monetary policy by keeping the price stability as principal goal. There are several monetary policies strategies or regimen to achieve the prices stability such as: targeting of the monetary mass, targeting of the inflation, and monetary policy with implicit nominal anchor. The analysis will focus on the Inflation Targeting regimen, its progress over the years starting from the period when it began to be applied and the effects of this regimen to the inflation before and after the economy crisis.

Keywords:

Inflation targeting, inflation, monetary policy, strategy

Session Chair

Oltjana Zoto

Session Co-Chair

Luciana Koprencka

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-25-7

First Page

70

Last Page

78

Location

Durres, Albania

Start Date

2-11-2013 11:30 AM

End Date

2-11-2013 11:45 AM

DOI

https://doi.org/10.33107/ubt-ic.2013.35

Included in

Business Commons

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Nov 2nd, 11:30 AM Nov 2nd, 11:45 AM

Inflation targeting and its effects on the inflation: Albanian case

Durres, Albania

Transformation from a centrally planned economy to a market economy was accompanied by a number of reforms such as the efforts to fully liberalize prices and the creation of a two-level banking system. To achieve this goal there was the need to include the monetary policy as one of the main macroeconomic policies. The law on “the Bank of Albania” defined the competence of BoA to draft and implement the monetary policy by keeping the price stability as principal goal. There are several monetary policies strategies or regimen to achieve the prices stability such as: targeting of the monetary mass, targeting of the inflation, and monetary policy with implicit nominal anchor. The analysis will focus on the Inflation Targeting regimen, its progress over the years starting from the period when it began to be applied and the effects of this regimen to the inflation before and after the economy crisis.