Advertisement

Analysis of the Effects of Macroprudential Measures on GDP’s Trend – Simulation Using a Macro Financial Model for Albania

  • Ela GolemiEmail author
Conference paper
Part of the Lecture Notes in Networks and Systems book series (LNNS, volume 91)

Abstract

This study provides an assessment of the impact of macroprudential policy measures taken from the Bank of Albania, on the main financial indicators and real economy’s dynamics, as well as their impact in raising the resilience of financial system and its stability. Based in Albania’s financial system composition, the level of market development and the quality of data, this study finds appropriate to make use of a Macro Financial Model for Albania to assess the effects of countercyclical macro prudential measures taken by the Bank of Albania, as a toolkit to address credit revival.

Our analyses support that all measures implemented individually improve the main financial variables and affect positively Albania’s GDP growth, although the impact of the simultaneous implementation of these three measures is higher. The implementation of macroprudential policy measures can help contribute to a stable financial intermediation by raising the resilience of the financial system against risks.

Keywords

Macroprudential policy Systemic risk Financial stability 

JEL Classification

C81 E5 G38 

References

  1. Adekola, A., Sergi, B.S.: Global Business Management: A Cross-Cultural Perspective. Routledge, New York (2016)Google Scholar
  2. Apostolos, S., Dennis, N.: International Monetary Policy Spillovers. International Monetary Policy Spillovers, Working Papers 2018-06Google Scholar
  3. BIS, BCBS.: Basel III: International Framework for Liquidity Risk Measurement, Standards and Monitoring, Bank for International Settlements, pp. 1–53, December 2010Google Scholar
  4. Bogoev, J., Petrevski, G., Sergi, B.S.: Reducing inflation in ex-communist economies independent central banks versus financial sector development. Probl. Post-Communism 59(4), 38–55 (2012)CrossRefGoogle Scholar
  5. Borio, C., Furfine, C., Lowe, P.: Procyclicality of the financial system and financial stability: Issues and Policy Operations, BIS Working Papers, no.1, pp. 1–57, March 2001Google Scholar
  6. Borio, C., Shim, I.: What Can (Macro-) Prudential Policy Do To Support Monetary Policy, BIS Working Paper no. 242, pp. 1–44, December 2007Google Scholar
  7. Caruana, J.: Macroprudential Policy: Working Toward A New Consensus, Remarks at the high level meeting on “The Emerging Framework for Financial Regulation and Monetary Policy” Washington D.C., pp. 1–6, 23 April 2010Google Scholar
  8. Dushku, E., Kota, V.: Macro Financial Model in Albania: Approach towards panel data. Materials for Discussion, Bank of Albania (2012)Google Scholar
  9. Goodhart, C.A.E.: Some New Directions for Financial Stability? The Per Jacobsson Lecture, Zürich, Switzerland, 27 June 2004Google Scholar
  10. Khandokar, I., Apostolos, S.: Monetary Policy and Leverage Shocks. Int. J. Finan. Econ. 23 November 2016Google Scholar
  11. Masood, O., Sergi, B.S.: China’s banking system, market structure, and competitive conditions. Front. Econ. China 6(1), 22–35 (2011)CrossRefGoogle Scholar
  12. Matousek, R., Sergi, B.S.: Management of non-performing loans in eastern Europe. J. East-West Bus. 11(1/2), 141–166 (2005)CrossRefGoogle Scholar
  13. Matousek, R., Dasci, S., Sergi, B.S.: The efficiency of the Turkish banking system during 2000–2005. Int. J. Econ. Pol. Emerg. Econ. 1(4), 341–355 (2008)Google Scholar
  14. McCauley, R.: Macroprudential policy in emerging markets. Paper presented at the Central Bank of Nigeria’s 50th Anniversary International Conference on “Central banking, financial system stability and growth”, Abuja, 4–9 May 2009Google Scholar
  15. Mishkin, F.S.: Monetary Policy Flexibility, Risk Management, and Financial Disruptions Speech at the Federal Reserve Bank of New York, NY (2008)Google Scholar
  16. Perotti, E., Suarez, J.: A Pegovian Approach to Liquidity Regulation, Duisenberg School of Finance - Tinbergen Institute, Discussion Paper, pp. 1–32, February 2011Google Scholar
  17. Petrevski, G., Bogoev, J., Sergi, B.S.: The link between central bank independence and inflation in central and eastern Europe: are the results sensitive to endogeneity issue omitted dynamics and subjectivity bias? J. Post Keynesian Econ. 34(4), 611–651 (2012)CrossRefGoogle Scholar
  18. Sergi, B.S., Qerimi, Q.: The Political Economy of Southeast Europe from 1990 to the Present: Challenges and Opportunities. Continuum, New York (2008)Google Scholar
  19. Sergi, B.S.: A new index of independence of 12 European national central banks: the 1980s and early 1990s. J. Transnatl. Manag. Dev. 5(2), 41–57 (2000)CrossRefGoogle Scholar
  20. Sergi, B.S.: Economic Dynamics in Transitional Economies: The Four-P Governments, the EU Enlargement, and the Bruxelles Consensus. Routledge, New York (2003)Google Scholar
  21. Sergi, B.S., Bagatelas, W.A., Kubicova, J. (eds.) Industries and Markets in Central and Eastern Europe. Ashgate Publishing (2012)Google Scholar
  22. Shin, H.S.: Financial Intermediation and the Post-Crisis Financial System, Prepared for 8th BIS Annual Conference, pp. 1–32, 25–26 June 2009Google Scholar
  23. Weistroffer, C.: Macroprudential supervision. In: Search of an Appropriate Response to Systemic Risk, Deutche Bank Research, Current Issues-Global Financial Markets, pp. 1–20, May 2012Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Department of Economic SciencesUniversity “Aleksandër Moisiu”DurrësAlbania

Personalised recommendations