The banking industry includes not only commercial banks (as we have them in Albania), but mainly investment banks, microcredit financial institutions (not banks) and pension and insurance companies[1]. All banks have large cash holdings. They hold a small amount...
The impact on inflation is dependent on the extent to which the country is dependent on imported raw materials and fuel and energy supplies. The increase in Albanian inflation, being lower than in the trading partner countries, did not manage to...
Inflation can affect public finances through multiple channels. It tends to expand tax bases in nominal terms, increasing nominal tax revenues, but it can also increase the cost of government spending, more directly for budget items that are automatically indexed...
The US dollar has strengthened significantly against the Albanian Lek as well as the currencies of many industrialized countries and emerging markets in the period of mid-2022. This overvaluation of the dollar is seen in the current conditions of rising...
