gent sejko : including monetary policy and financial shocks and trends in modelling and policy analysis address by mr gent sejko, governor of the bank of albania, to the tenth south - eastern european economic research workshop “ including monetary policy and financial shocks and trends in modelling and policy analysis ”, tirana, 1 december 2016. * * * dear participants, i am privileged to open the 10th south - eastern european economic research workshop organised by the bank of albania, and welcome all new and returning friends. i would like to congratulate bank of albania ’ experts that present every year their research works for discussion. this year ’ s workshop will focus on the main topics that prevail in the economic, political and academic debates in the field of economy, finance and central banking. the topic of this workshop is : “ including monetary policy and financial shocks and trends in modelling and policy analysis ". the focus was placed on these topics on the grounds that the central bank and policy decisions should take into account an increasing number of shocks that are arising not only as a consequence of economic, but also of political, legal and regulatory phenomena. the challenges that monetary policy and financial stability are facing reflect the problems of the society in the economic, social and geo - political aspects. these challenges are best reflected in the noneffective functioning of the pass - through mechanism that should transmit and amplify the positive effects of central banks ’ decisions. these challenges increase ambiguity, uncertainty and volatility in goods, services and financial, markets, broaden and intertwine the nature of shocks and place the authorities vis - a - vis new and unprecedented phenomena. these developments render the well management of monetary policies and financial stability even more difficult as a result, scientific research needs to : explore and propose new solutions, more efficient empirical and theoretical models for policy implementation by central banks ; assess the effects of the adopted policies ; and, carefully observe the side effects in the economy or the financial system, which may potentially accompany such policies. due to unconventional monetary policies, central banking is practically in unexplored territories ; therefore, it is necessary to carry out an assessment of how the economy reacts to shocks under such circumstances. the bank of albania is interested in identifying potential shocks and their modelling with a view to guaranteeing optimal solutions in terms of prices, economic activity, employment and financial system soundness. for that reason, we invite you to discuss openly and thoroughly all the papers that will be presented during these two

in the long term should be based on accomplishing structural economic, legal and institutional reforms, designed in the framework of the european integration process. the priorities of our economies should focus on maintaining macroeconomic and financial stability, continuing structural reforms in infrastructure and the labour market. creating favourable conditions for doing business and for honest investors, by fighting informality, should be accompanied with the creation of human capital and preparation of the workforce in accordance with the actual technological developments and challenges. dear participants, the transition report 2016 – 2017 of the european bank for reconstruction and development is an important document for all of us. regardless of our status – decision - makers, policy makers, researchers, academia or journalists – the report provides abundant information for furthering our analyses and conclusions. i invite you all to read it, and rationally and responsibly materialise its conclusions in your analyses for the present and the outlook of the economy. thank you! 2 / 2 bis central bankers'speeches