In turn, a surprise permanent increase in the price level can trigger medium-term inflation dynamics through its impact on the subsequent path for nominal wages, as some unwinding of the initial decline in real wages can be expected and the wage adjustment process can play out over an extended period.
We have seen seven months of intensive work and excellent cooperation designed to strengthen the institutional capacity of the central bank, an institution which is key to the overall macroeconomic and financial stability of Montenegro as it moves towards joining the European Union (EU). The programme has also helped to strengthen the contacts and relations between our institutions.