Euroisation - Advantages and Disadvantages of Albanian Economy by Process of Cash Domestic Replacement

Abstract

Albania is a country which is still in the second stage of economic development. The use of foreign currencies, particularly the U.S. dollar and the European currency has been and is a reality in the Albanian economy. The practice of using foreign currency in Albania extends from the price policies of commercial manufacturing firms, Albanian families who keep their savings in foreign currencies (mainly generated from remittances) to and relationship banking activity their business (on credit), etc..By this paper work, I will try to give the impacts of this phenomenon in the Albanian economy, the advantages of disadvantages comparing Euroisation and the consequences that we had neighbors with Albania.In this paper, I have tried to present a picture so modest depiction of the Albanian economy, economic convergence problems, implications that can create euroisation (potential costs and benefits, etc.).

DOI: 10.5901/ajis.2013.v2n8p106