[12] Brunnermeier (2023), “Rethinking monetary policy in a changing world”, in IMF Finance and  Development, March. [13] Borio and Disyatat (2021), “Integrated policy frameworks: the constraints of policy horizons and  adjustment frequencies”, SUERF Policy note 246. [14] Shirakawa (2023), “Time for change”, in IMF Finance and Development, March.
This debt tends to increase over the periods of economic slowdown, in response to fiscal counter-cyclical policies and the impact of automatic stabilisers. However, given the essential role of fiscal sustainability in the overall economic and financial stability, and the high level of Albania’s public debt, the Bank of Albania has requested and supported the taking of measures to control and reduce this debt in the medium term. In this context, we reiterate our message for anchoring this process to a fiscal rule, which will orient the fiscal policy in the long term, and will be reliable and transparent for all Albanian and foreign economic agents. Developments in the external sector of the economy signalled a sluggish foreign demand in the third quarter of the year. Though trade deficit dropped, the external sector impacted negatively on the economic growth due to lower tourism revenues. In October and November, the external trade data show ongoing annual nominal contraction of the trade deficit, at 11.9%. This contraction was due to increase in exports by 12.0% and decrease in imports by 2.0%, over this period. The Albanian economy's capacity to maintain and speed up the positive export growth rates will determine the country's medium-term and long-term economic growth. In the medium term, increasing exports helps offset the domestic demand sluggishness, while in the long term, increasing competitiveness of the Albanian economy in the world markets should be to the core of Albania's new economic growth model.