interest rates

Holding cash by businesses as a survival strategy

In 2024, the Albanian economy has shown stable growth and declining inflation, creating a favorable environment for economic activity and financial stability. According to the Bank of Albania, the economy grew by 3.8% in 2024, driven by increased household spending and...

What should be the expectations from a combined fiscal and monetary policy regime?

A fiscal policy that focuses on primary surpluses regardless of the stock of real debt, but combined with a monetary policy that ensures interest payments on outstanding debt, is assessed by international financial institutions as not causing debt to grow...

Imports and exports of 2023, the effect on the economy and the indicators that have influenced the overvaluation of the Lek

In our economy, imports of goods in 2023 are 1.98 times higher than exports [1]. This ratio has increased by 3% compared to 2022. Albanian consumers are used to seeing products from every corner of the world in their...

What is a strong economy?

In clarifying the term strong economy, according to many definitions and criteria from most information, it is seen that it should summarize together: - High rate of economic growth. According to our commentary, this implies an expansion of economic output,...

What is happening with prices and Euro and what is waiting for the monetary and fiscal policy?

In a clarification of the current situation, if our market would be like that of advanced countries, it is that the lost fight against evasion and corruption, as well as failure to act in time to have an expanded and...

A weaker euro is affecting everything and cutting some gains in the country

By far, the euro's biggest obstacle is a single monetary policy that often does not suit local economic conditions. It is common for EU countries to benefit under these conditions. In contrast, others, including Albania, suffer from this discriminatory course...

…to create a resilient fiscal shield to adjust to shocks

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...

Exchange rate risk between Lek and Euro in the Albanian market

In broad terms, exchange rate risk [1] is major when a company or investment relies on a foreign currency that must be converted into the Albanian lek. Foreign exchange risk can be caused by the appreciation/devaluation of the Lek,...

What options do we think are needed in addressing alternative sources for the budget and anti-inflation actions?

Fighting inflation by increasing interest rates may lead to a weakening of production and employment in 2023, but also a further contraction of purchasing power in the country. First, it should be analyzed that monetary policy is not obligatory to follow...

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