Debt monetization

Author(s): Alba Ramallari1, Gentjan Ramallari2
  • 1. University Aleksander Moisiu, Faculty of Economic, Economics Department
  • 2. Alia sh.p.k, Director of Finance sectorr

Abstract: Debt Monetization. Although it remains one of the most discussed economic issues in various countries, everyone wants to find the best possible solution. In developing countries like Albania, alternatives are limited, but we still tend to follow the example of the West, especially the United States. Debt management strategies are very different, what is required is to choose with less additional costs. What is often attempted is to reduce the burden of generations to pay. Often policies do not bring the expected result and the situation changes. Debt settlement has also been seen as a solution, but how many times will it give us a positive result that no one predicts. We believe that the issuance of new money will bring results in certain situations. Putting new money into circulation would not create new debt, but would have other costs for the country. New emissions could create inflation. Such strategies have been used since early times in developed countries. In cases like this, the cost of new emissions and inflation costs remain to be compared. Many policymakers are affected here and follow the negative consequences of these cases and link the events one after the other. Different countries have different reactions, but a common goal, before the state budget. These and more will be addressed throughout the topic Debt Monetization.