“…In the case of Albania, present analyses of previous policies still tend to disregard such adverse effects of earlier reforms. Financial fragility is not sufficiently captured by noting, without further specification, that "political stability and control of the informal financial sector are also crucial" or that "now is an opportunity to renew the momentum for reforms" (Hashi and Xhillari, 1999, p 100;Haderi et al, 1999). Typically, McNeilly and Schiesser-Gachnang (1998), investigating the 1992 inflation reduction policy in Albania, ascribe its success to trade liberalisation, extensive external assistance, tight fiscal policy, increased savings, and hard budget constraints -but fail to note the perverse effects on financial markets developments that these very policy instruments and their responses can have, and clearly had in Albania.…”