And the fact that consumption is so volatile – in itself as well as in relation to income – suggests the existence of serious limitations in the ability of economic agents in emerging markets to smooth consumption in response to shocks. A central proposition of our studies is that a large part of the explanation for higher macroeconomic volatility in emerging markets rests with key differences in the nature of shocks hitting emerging market economies, as well as the way in which the economic system of emerging markets propagate the shocks. Figure 1 captures our basic arguments, and depicts how observed macroeconomic outcomes are the result of the interaction between the nature of shocks and the structural features of the economic system. 2  BIS Review 98/2008  Firstly, the nature of shocks that emerging market economies experience is quite different from that of developed economies. A particularly pertinent example in this context is capital flow shocks. By virtue of their limited access to capital relative to their growth potential, emerging market economies are natural recipients of capital inflows from capital-rich economies. These inflows are attracted by prospects of higher return and provide the necessary funding of investments that facilitate economic development, especially when the inflows are of the type that bring technological transfers and managerial expertise. But as shown in Table 2, capital flow shocks, especially debt and equity, are more volatile in emerging markets relative to developed economies, as well as relative to other developing economies.
We will work hard, so that all the interested persons, whether in Albania or abroad, will be able to learn about the history of banking, money and people that have dedicated their life and work to it. I am certain that very soon the Museum of the Bank of Albania will be a place to visit the exhibition, and exchange opinions and ideas about banking and money Concluding, I would like to thank you for your participation and contribution to the conference and wish success in these two days of the conference. Thank You! 2/2  BIS central bankers' speeches