Research Papers

Core inflation is traditionally measured as the inflation rate of excluding food and energy prices. This paper presents an alternative calculation of core inflation for the Albanian economy, namely the weighted median inflation rate. The calculation is constructed upon the CPI in a detailed seven-digit level for the period 2019-2024, and in a four-digit level for 2009-2018, at a monthly frequency.

The progressive reduction of the key interest rate over recent years, exemplifying the accommodative monetary policy implemented by the Bank of Albania, necessitates a thorough examination of the repercussions of monetary policy on both bank profitability and the stability of the financial sector in Albania.

The Macro Econometric Albanian Model (MEAM) is a semi-structural model consistent with neo-classical growth models for small-open economies. While the long-run properties are closely linked to theory, the short-run dynamics are estimated and data driven.

This paper describes the evolution of the macro stress testing of the banking sector applied in the Bank of Albania over the past 15 years. It gives details about the stress testing methodologies used over this horizon, with emphasis on the last two approaches: the one used in 2013-2021 and especially the one used currently, i.e. a new approach that started in 2022.

This paper provides a simple new empirical alternative approach, which is based on daily data for the period 2008-2020 and various binary indicators, and it builds a set of econometric models that can be easily used to predict short-term and medium-term liquidity needs in the banking system over a chosen time horizon.

In the absence of a treatment or a vaccine, the economic fallout due to a pandemic is undisputable either due to the spread of the pandemic and lives lost or due to the lockdowns imposed to limit the spread.

The scope in this study is to assess the impact of unconventional monetary policy (UMP) of European Central Bank (ECB) on the dynamics of the Albanian economy.

Digital currencies (DC) have spread quickly enough to draw the attention of policymakers and international organizations. The benefits in terms of greater speed and efficiency of payment transactions are clear. A greater ambiguity prevails regarding the risks to financial stability and monetary policy effectiveness.

In the last decade, Albania has mostly faced lower inflation rates if compared with the 2000s. This seems associated both with weak cyclical conditions as well as with the presence of mostly negative imported inflation. Therefore, both the domestic and external environments foster low (even negative) inflationary pressures.

This report summarizes the main findings from the first round of the Albanian Household Wealth Survey, conducted by the Bank of Albania in early 2019. The purpose of this survey was to collect individual data on Albanian households, focusing on wealth and its main components.