Material category : Not Periodic Publications / Working Papers
This paper follows up on the previous paper titled “A macro
econometric model approach for Albania”. The objective is to
present the progress of the macro-model during 2007. Actually, the
model is enriched with the supply side and fiscal sector and includes
the main channels of the transmission mechanism of the monetary
policy. We have applied a new method of disaggregating annual
to quarterly data and also some new definition of key variables,
such as disposable income. The results indicate that the model is
stable, it converges in the long run to its desirable path and it may
be suitable for different policy scenarios. On the other hand, the
forecast performance of the model was so far not analysed.