SEEU Review vol. 5 Nr. 2 (pdf) - South East European University

SEEU Review Volume 5, No. 2, 2009
given policy? Cani (2008) suggests that a higher transparency level will
increase the monetary policy efficiency and transparency through its impact
(effect) on the expectations of economic agents. Also a well informed public
may help the Central Bank in the case of a conflict with the government. The
high level of transparency and responsibility is positively related to the
increase of central bank reputation.
Even the implementation of Inflation Targeting Regime requires a high
level of central bank transparency. One of the elements that may increase
the level of transparency is the Supervisory Council meetings results
publication. Article 50 states that these results are confidential. For this
reason Cani (2008) recommended to change this article.
Conclusions
The literature review suggests that different economists give different
definitions on the central bank independence. But the most important thing is
that they all agree when they discuss about the real independence. They
measure it with different indicators but the most important is that they draw
the same conclusion. Having a good law 29 on central bank is a plus but it
isn’t enough. If this law is left apart than central bank isn’t independent.
In the comparative analysis of Southeastern Europe central banks’
independence we noticed that there are a lot of problems. We analyzed four
kinds of independence and we concluded that Albania has a high level of
legal independence, but still there are problems with financial independence.
For these reasons, we recommended some improvements.
The first law on Bank of Albania was approved in 1992. It was a
problematic law and it was amended 3-4 times. Nowadays, the law is
relatively good, and it can guarantee the independence of the Bank of
Albania. The situation with the real independence is a little bit different. One
of the indicators used to measure the real independence is the governors’
turnover rate. In Albania this indicator is 0.48. It is relatively high and it
shows that Albania suffers from other “diseases”. These problems are
mentioned in the last section of the paper and we think that there is still a lot
left to do before we can say that we have a real independent central bank.
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Good law is a law that guarantees the political, instruments and objective independence.
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