On December 6 and 7, 2021, the Bank of Albania is organizing the 15th SEE Economic Research Workshop. This workshop, organized for the 15th year in a vintage, aims to provide a forum for discussion on the work and research projects carried out by the Bank throughout 2021, as well as the research work of colleagues and researched others. central banks and prestigious universities in Albania and abroad.

This year, the workshop is also being held virtually, due to the restrictions related to the COVID-19 pandemic that are still in place. During the two-day workshop, 20 research papers will be presented and discussed, five of which are written by staff members of the Bank of Albania.

In his address to the workshop, Mr. Sejko, Governor of the Bank of Albania, underlined that in 2020 the discussions focused on modern monetary policy and the role of the central bank balance sheet as an instrument. permanent monetary policy that can and should be widely used to support aggregate demand. Meanwhile, the current monetary policy debate revolves around the extent and duration of the recent surge in inflation.

The latest inflationary developments have divided academics and central bankers into two camps with diametrically opposed positions. On one side are those who believe that current inflation is a threatening phenomenon that risks leading to an inflationary situation, and therefore calls for immediate intervention to bring balance sheet policies and rising interest rates under control. The other side argues that the current inflationary developments are a temporary phenomenon resulting from supply side issues that reflect the negative effects of the pandemic.

The Governor added that in light of conflicting views among economists, research to improve inflation models should continue, especially since after all these years of study and research to understand the phenomenon of inflation, we are again going through doubts and mixed positions.

Mr Sejko pointed out that COVID-19, together with the problems it has caused and the restrictions taken to contain it, continues to dominate our economic and social life and activity, and it has also certainly become an important part of the work. analysis and research. of the central bank.

However, recent developments show that the research agenda of central banks has been enriched by the study of other risks, such as those related to climate change and environmental protection, demographic risks, digitization and digital currency, etc. These have been identified as important. and the long-term challenges both for the global economy and the authorities of each country, and in this context, the Bank of Albania has started to work on the establishment of the infrastructure to model and analyze these phenomena .

In conclusion, Governor Sejko thanked the participants for their participation, stressing that their contribution serves to improve the work and conclusions of scientific research, making them more valuable for our institutions, especially in this unprecedented time caused by the pandemic. of Covid-19.