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Author Jarvis, Christopher J.

Title The rise and fall of the pyramid schemes in Albania / prepared by Chris Jarvis
Published [Washington, D.C.] : International Monetary Fund, European I Department, [1999]
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Description 1 online resource (36 pages) : illustrations
Series IMF working paper ; WP/99/98
IMF working paper ; WP/99/98
Summary This paper tells the story of the Albanian pyramid scheme crisis of 1996-97, analyzes its causes and consequences, and attempts to draw some lessons from it. The pyramid scheme phenomenon in Albania is important because its scale relative to the size of the economy was unprecedented, and because the political and social consequences of the collapse of the pyramid schemes were profound. At their peak, the nominal value of the pyramid schemes' liabilities amounted to almost half of the country's GDP. When the schemes collapsed, there was uncontained rioting, the government fell, and the country descended into anarchy and a near civil war in which some 2,000 people were killed. This paper explores the causes of the rise of the pyramid schemes, and addresses the question of what could have been done to prevent it. It also examines the handling of the crisis. The paper then discusses the economic effects of the pyramid scheme phenomenon, and concludes that despite the tremendous political effects, these have been surprisingly limited. Finally, it suggests lessons that can be drawn from the crisis by other governments and by the international financial institutions
Bibliography Includes bibliographical references (page 36)
Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. MiAaHDL
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Banks and banking -- Albania.
Financial crises -- Albania.
Multilevel marketing -- Economic aspects -- Albania.
Multilevel marketing -- Albania.
Form Electronic book
Author International Monetary Fund. European I Department.
ISBN 1281602752