Research Papers

This study aims to assess the sensitivity of exchange rate to real and monetary shocks in Albania during the last 20 years. The identification of these shocks provides a better understanding on the sources of exchange rate volatility. It also provides useful information whether exchange rate acts as a shocks absorber or as a source of instability in the economy.

This study empirically evaluates the impact of housing market dynamics and banks’ housing market exposure on banking sector stability in Central, Eastern and Southeastern Europe (CESEE). We investigate whether there are differences between the behavior of banks located in CESEE EU Member States and the behavior of banks located in the Western Balkans.

This paper analyses the relationship between competition and banking stability in the Albanian banking sector during the period 2008 - 2017. For this reason, an index of banking competition, such as the Boone indicator, is constructed. Other alternative indicators are also calculated, such as: the Lerner index and adjusted Lerner index; and the competition indicator, which relates to profit elasticity.

This working paper explores the main factors contributing to low inflation in Albania in the post-crises years in an environment characterized by relatively stronger economic growth, lower unemployment rates and improved confidence.