gent sejko : welcome remarks - 15th see economic research workshop welcome remarks by mr gent sejko, governor of the bank of albania, at the 15th see economic research workshop, virtual, 6 december 2021. * * * dear professors and researchers from academia, dear fellow central bank colleagues and researchers, dear participants, it is a great pleasure to open the proceedings of the 15th see economic research workshop, which is being organised virtually this year as well, due to the covid - 19 pandemic restrictions that are still in place. i take this opportunity to express my wish that we would all stay safe and healthy and for the negative effects of the pandemic to come to an end as soon as possible. i hope that the vaccination process, progress in knowledge, cures against covid - 19, and an improvement in the overall situation caused by the pandemic, would enable us to welcome you in tirana next year. i am glad to note that we have again a full house and a rich agenda this year, with two days in which colleagues and researchers from central banks as well as distinguished universities in albanian and worldwide will present their works. we really appreciate your interest in participating in this workshop and in the research carried out by the bank of albania throughout 2021. i am confident that discussions across this workshop ’ s panels will be very interesting. the annual organisation of this workshop has served to share experiences with the participating central banks and have enriched research work, becoming in turn an integral contributor to policy formulation. these workshops have made a valuable contribution for confirming and interpreting research results, which enable the compilation, calibration and implementation of policy measures for tackling the pandemic and similar shocks. your findings, comments and discussions assist our authors to improve their studies, and in turn contribute to the formulation and decision making of policy at the central bank. evidence, analysis and forecasts based on the research work that you will present in these two days will provide accurate and valuable information for orienting and coordinating decision making in the future. 20 research projects will be presented and discussed this year, which in in spite of covering a broad gamut / range of topics, are directly related to the activity and interests of the central bank. we have discussed almost the same topics a year ago however, you could rightly say : “ what a difference, compared to last year? ” in 2020, discussions were focused on the modern monetary policy, and the role of the central bank

and financial stability at home. from the above viewpoint, the nature of stimulus policies at present and in the future should aim at minimizing the costs of side effects that the expansionary policies have caused in the course of years. a very important place in this direction is occupied by reduction of debt created during the fiscal expansion, and reduction of its cost. in this framework, all the fiscal authorities should work not only for avoiding the creation of new debt, but also for settling the debts in arrears with maximum efficiency. debt exit strategies, including also the replacing of the expensive debt in arrears with a new cheaper debt, are very important and welcomed. in current conditions, when there is a high probability for further debt growth, the policies to sustain the economy by expenditures is restricted from the incapability of the economy to generate economic growth. shifting the focus of discussion to the reality of our economy, in order to maintain the debt level and the macro - financial stability, it is necessary to restrict expenditures in accordance with revenues. the latter depends directly on albanian economy revenues. therefore, it is very important to encourage the economic development and to direct the financial resources to those directions where the albanian economy provides its competitive advantage. this would enable the substitution of imported consumer goods with domestic products whenever possible and efficient. the purpose is to encourage production not only for domestic consumption but also for exports in traditional markets and products and in new ones. this objective is a necessity, not only from the short - term and mid - term perspective, but also from long - term one. the strategies for debt management and reduction ( debt restructuring ) are not only part of the macroeconomic policies. they should be extended to every cell of the economy, whenever the microeconomic balance sheets have been burdened by debt. the restructuring and the resumption of lending activity can not take place without leaving aside the sick and bad part of the balance sheets. currently we are confronted with exchange rate correction. this automatic adjustment of consumer and producer behaviour in terms of consumption, savings and investments, has been an indispensable process in line with the new equilibrium. however, it is insufficient ; therefore, it should be accompanied by correction of fixed asset prices in accordance with the new wealth balances. i would like to emphasize that the equilibriums of a balance - sheet, either fiscal, private or household one, are guaranteed by simultaneous and equal changes in its both sides. banks and businesses should work together to identify and separate