02011cas a2200277 a 4500 AALejournalIMF018224 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484338728 1018-5941 BD-DhAAL BD-DhAAL della Valle, Guido. Euroization Drivers and Effective Policy Response : An Application to the case of Albania / Guido della Valle, Vasilika Kota, Romain Veyrune, Ezequiel Cabezon. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper proposes a methodology to develop empirically based and theoretically consistent deeuroization policies. It is derived from the experience of Albania. The paper is the first attempt to provide an empirical measure of the optimal level of euroization. The results indicate that euroization is trending above the estimated measure in Albania, calling for deeuroization policies. In the long term, deeuroization requires maintaining the commitment to low and stable inflation in a context of greater exchange rate flexibility to encourage saving in local currency. In the short term, policies that mitigate the financial stability risk due to euroization contribute to deeuroization inasmuch as they make banking intermediation in euro less financially attractive to the public. Mode of access: Internet Cabezon, Ezequiel. Kota, Vasilika. Veyrune, Romain. IMF Working Papers; Working Paper ; No. 2018/021 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/021/001.2018.issue-021-en.xml IMF e-Library