##s : the volatile nature of the irish macro - financial system and the history of crises suggests a debt target that should be materially below the appropriate level for a larger, more stable economy. of course, a target for the stock of public debt should be appropriately interpreted in the context of the wider public sector balance sheet, with due allowances for the dynamics of various types of financial and non - financial assets ( including public capital ) and the range of contingent and implicit liabilities. in relation to the cyclical budgetary stance, the pursuit of macro - financial stability requires that the government runs a counter - cyclical fiscal policy. in addition to the mechanical operation of the automatic stabilisers that are embedded in the dynamics of tax revenues and transfers, a government may need to take further discretionary measures to tighten budgetary policy during phases of robust economic growth. the development of a counter - cyclical fiscal strategy should also strike the balance in the allocation of surplus revenues between the proposed rainy day fund and reducing the gross stock of public debt. in addition to ensuring that the fiscal balance is set at a cyclically - appropriate level, the government can use additional tools to mitigate overheating pressures, including the deployment of cyclically - varying expenditure taxes. determining the optimal counter - cyclical fiscal stance may soon be quite relevant for budgetary policy if the economy hits full employment. for instance, the macroeconomic implications of the projected further expansion in public investment during 2019 – 2021 that is signalled in the summer economic statement depend on whether and when the economy attains full employment. while additions to the public capital stock can be expected to raise the productive capacity of the economy and / or assist in the attainment of social objectives over the medium term, the process of public investment acts to raise aggregate demand in the near term. while the demand - raising impact of public investment can be stimulative during periods of economic slack, a surge in public investment under conditions of full employment requires counter - vailing measures to limit the risk of costly over - heating dynamics. alternatively, stretching out a planned public investment programme over a longer horizon can limit pressures on the absorptive capacity of the economy. finally, it is important to note the complementarities between counter - cyclical macroprudential and fiscal policies. 2 in one direction, a robust macroprudential policy framework mitigates creditdriven cyclical shocks, easing the burden on fiscal policy. in the other direction, counter -

loans denominated in the albanian lek were downward, in response to monetary policy signals. in the period ahead, a more comprehensive response of the real economy to the eased monetary conditions is expected. * * * the supervisory council of the bank of albania deems that inflation will remain at low levels and close to the medium - term inflation target of the bank of albania. the performance of the domestic economy, global economy, and financial markets is not expected to generate any deviation from the 3. 0 % inflation target. under these conditions and in the absence of unexpected shocks from the supply side, consumer prices will increase at low rates and will range within the target of the bank of albania. * * * at the conclusion of discussions, the supervisory council decided to keep the key interest rate unchanged, at 4. 00 %. keeping the key interest rate at minimum rates helps maintain the stimulating character of the monetary policy, thus enabling the real economy to take advantage of better lending terms in 2013. furthermore, this policy contributes to keeping inflation expectations in control, by helping lower long - term interest rates. bis central bankers ’ speeches