Sejko: Global uncertainties make communication with the public even more important

2024-12-16 14:38:00, Aktualitet CNA

Sejko: Global uncertainties make communication with the public even more

The governor of the Bank of Albania, Gent Sejko, today held a meeting with publicists, analysts, well-known journalists and representatives of the printed press and electronic media in Albania.

In his welcoming speech, Governor Sejko thanked the guests for their participation, as well as for the realistic and truthful reflection of all the activities of the Bank of Albania during 2024, including its decision-making in the field of monetary policy.

"Through your work, the Bank of Albania has been able to communicate with the public its decision-making in the field of monetary policy and financial stability, to announce regulatory changes and the latest news in the field of banking supervision, the payment system, education and inclusion financial and digital financial.

Your professionalism has enabled us to communicate effectively, helping the transmission of our policies in the economy, and consequently, in maintaining the stability of prices, that of the financial sector and the macroeconomic stability of the country in general", said the governor.

He emphasized that new technological developments and global uncertainties make the communication of central banks with the public even more important. For Albania, this communication takes on more value, in conditions where individuals are challenged by the unsatisfactory level of financial culture, especially the digital one.

However, thanks to the work and close cooperation with the media, the central bank has managed to convey to the public the position and the expected consequences of any policy undertaken, reflecting the truth and eliminating any misinterpretation or deviation from it.

Following the activity, the three winners of the "Governor's Award for the Best Diploma for 2024" were also evaluated - a competition that has been organized for 18 years by the Bank of Albania and invites Albanian students from all over the world to present their works in the field of economy and finance.

This year, 24 students of different study levels participated in it. The topics presented addressed the traditional objectives and policies of central banks. At the same time, many of them were focused on the issues that have dominated the activity of BSH during 2024, without leaving aside issues related to climate change, education and financial inclusion of the population and payment systems.

The year 2025 will be a jubilee year, as it marks the 100th anniversary of our central bank. Leading up to this anniversary, some of the topics were focused on the field of historical research, analyzing the character and evolution of trade agreements, as well as monetary and financial developments. "I am pleased to say that the topics meet our expectations and fulfill the best characteristics of a scientific work." - said the Governor.

The first prize was awarded to Markelian Blacëri, Master's student at the University of Padua, Department of Economics and Administration "Marco Fanno" - with the topic of the diploma: "Long-Term Shadows of Monetary Policy: Can Policy Shocks Affect the Natural Rate" of Unemployment?".

This topic focuses on estimating the impact of monetary policy on the natural rate of unemployment by analyzing two specific types of shocks: first, traditional monetary policy shocks and second, changes in information about the stance of monetary policy, otherwise known as “ the orientation of the central bank for the future of monetary policy". To examine these effects, the author uses a combined approach of empirical models.

In the first stage, a standard "Local Projection" model is applied, enriched with Bayesian methodology. Second, an alternative specification of the empirical model is applied, based on the SVAR (structural autoregressive vectors) methodology.

The second prize was awarded to Endri Deda, a student at the University of Paris Dauphine-PSL, for the topic "The Effect of Deep Trade Agreements on FDI flows". This study aims to empirically assess the effects of deep trade agreements and investment provisions on FDI, analyzing the direction and magnitude of these effects.

The empirical model is based on the gravitational model of trade, which has been extended with a specific variable representing deep trade agreements. The analysis was carried out using the "MREID" database and the World Bank for the period 2010-2021, to assess the economic impact of these agreements at the global level.

The third prize was awarded to Eneda Gjoka, a student at "Aleksandër Moisiu" University, Durres, for the topic "Using Machine Learning for forecasting inflation in economic trends". This thesis deals with the use of advanced Machine Learning (ML) techniques for forecasting inflation rates in Albania, aiming to improve the accuracy of forecasts and provide valuable knowledge on economic trends.

Traditional economic models often face challenges in predicting inflation rates due to the complexity of the interactions between monetary policy, supply and demand dynamics, and impacts from global financial events. In this study, ML techniques, such as time series analysis and LSTM-type advanced neural networks, are explored to identify patterns and more accurately predict inflation rates./ Monitor Magazine