Skip Navigation

This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrow Search for citing articles in:
ISI Web of Science (1)
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Bezemer, D. J.
Right arrow Search for Related Content
Related Collections
Right arrow E62 - Fiscal Policy; [...] ; Taxation
Right arrow F15 - Economic Integration
Right arrow E12 - Keynes; Keynesian; Post-Keynesian
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

Cambridge Journal of Economics 25:1-23 (2001)
Copyright © 2001 Cambridge Political Economy Society

Article

Post-socialist financial fragility: the case of Albania

DJ Bezemer

Roetersstraat 11, 1018 WB Amsterdam, The Netherlands
E-mail: secma@fee.uva.nl

Abstract

The 1997 collapse of the Albanian economy caused by the collapse of economy-wide Ponzi schemes contrasts sharply to its success status as a post-Socialist transition country in the years 1992-1996. In this paper, an attempt is made to explain this 'Albanian Paradox'. The specific Albanian conditions for the growth of Ponzi schemes are identified. Theoretically, the Albanian Paradox can be interpreted as one version of the 'Financial Instability Hypothesis' suggested by Minsky. Investigation of the underlying factors that render financial markets fragile suggest that the Albanian case is extreme but not unique in the region. It is emphasised that sustainable growth is predicted on the quality of government, on proper financial-sector regulation, on actual microeconomic restructuring and on the development of market institutions through which adequate market information is disseminated.

Key Words: Albania • Ponzi schemes • financial instability hypothesis • transition economies


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?


This article has been cited by other articles:


Home page
 Review of Radical Political EconomicsHome page
A. Nesvetailova
Fictitious Capital, Real Debts: Systemic Illiquidity in the Financial Crises of the Late 1990s
Review of Radical Political Economics, March 1, 2006; 38(1): 45 - 70.
[Abstract] [PDF]


Disclaimer:
Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.