Inflation Targeting and Economic Growth: Case of Albania

Abstract

The purpose of this paper is the impact of the variable "Inflation targeting" in Albanian economic growth over the years. The paper examines the role of inflation targeting on economic growth in Albania for the period 1991-2013, focusing briefly on the performance and the determinants of each of these indicators. The decrease or increase of the Albanian economy has many factors that influence its performance. Econometric tests developed in this paper, shows how this variable was stable and how it has affected the economic growth. Econometric analysis shows that inflation targeting effect economic growth but not the opposite. Inflation targeting and economic growth in Albania have a negative correlation.

DOI: 10.5901/ajis.2015.v4n3s1p403