but across many countries and many decades, there is a level of unemployment below which wages growth starts to pick up meaningfully. you can see when an economy has reached that point. that is all that the nairu is – the label we give to that point. the strength here is that the definition of the nairu is framed in terms of things that are more visible and measurable – actual unemployment and wages growth ( and inflation ). for other concepts, such as risk appetite or uncertainty, the connection to measurable quantities is far more nebulous. that is partly because the theory in these areas is less settled. many inferable quantities are emergent properties of the system taking the example of the nairu again, we should note that its precise value is not a number handed down from the heavens. it is an outcome. it is the result of individual decisions of a large number of workers and firms. those decisions do not depend on people knowing the current level of the nairu, or even that such a thing exists. rather, people make decisions about the level and rate of change in wages to offer ; those decisions are presumed to relate in some systematic way to the state of the labour market. it really helps to think about the economics here, and specifically about the human behaviour aspect. think about what is happening when a firm decides to offer a larger wage increase than before – or when workers successfully demand one. a firm might decide to offer higher wages if they can't find a suitable candidate at the current wage. it's easy to see why that decision might depend on the overall level of unemployment, because the unemployed represent an important part – though not the entirety – of the pool of potential candidates. that said, it's also easy to see why it might depend on other things as well. for example, it could depend on how well the skills of the candidate pool match the requirements of the jobs on offer, and on how easy it is to find those candidates. what this means is that the level of the nairu is an emergent property of the system. it is not baked in. it can change. in a number of advanced economies, it has indeed changed. the unemployment rate has reached multi - decade lows in several economies. wages growth has been picking up for a while, suggesting that the unemployment rates in these countries are now below whatever their nairu is. but they also reached much lower levels of unemployment before this happened than they would have

honourable minister shala, honourable chairman of the cbk board, mr mrasori, honourable deputy governor, representatives of financial institutions, honourable participants, ladies and gentlemen, i am pleased that today we are all together marking the world consumer rights day, which is now transformed into an annual activity for the central bank of the republic of kosovo. the special feature of today's organization is that this is happening within the activities of marking the 20th anniversary of the establishment of cbk, so we are in a good moment to reflect on the development of kosovo's financial system over these 20 years and our orientation for the development of this sector in the future. kosovo started developing the financial system in 1999, at a time when everything had to be developed from the outset. the first years of cbk's operation were mainly related to the construction of the basic infrastructure necessary for the functioning of the financial system, starting from the regulatory and supervisory framework, the payment system and so on. over time, together with the highly valued support from our international partners, cbk managed to advance its capacities at the same level with the central banks of countries with a longer tradition of the financial system. cbk went through different development stages, and so did the financial institutions operating in kosovo. the first years of their operation were quite challenging, because they operated in an environment of high uncertainty and significant lack of information. nevertheless, the improvements made in the financial infrastructure and in the overall business environment in kosovo, together with the growth of maturity of financial institutions and cbk during these 20 years, have resulted in a modern and sound financial system that is successfully implementing its role of financial intermediation in support of the sustainable development of the country's economy. nowadays, our financial system is generally characterized by steady growth of activity and a very satisfactory level of financial health indicators. whereas, in the first years of operation of the financial system, the focus was on creating the conditions for providing basic financial services for the country's economy, now we have reached a level where more attention is given to the quality of these services, where undoubtedly, activities aiming consumer protection of financial services occupy a very important place. for us, consumer protection activities represent a daily task that we exercise with the utmost seriousness, and this day will be used as an opportunity to make a general reflection on these activities. consumer protection is not a single action, but an entire process that promotes responsible behaviour of financial institutions by incorporating various aspects that, besides protecting the