Is there a future risk of inflation rising or falling rapidly? 2. Asset prices  The next question concerns the importance of asset prices as regards the formation of monetary policy. Asset prices are not included in the inflation index, which we normally try to stabilise.It is not controversial to say that supply price trends should influence monetary policy to the extent that they are part of the inflationary process. Asset prices can be a leading indicator of price developments in other areas. They can reflect confidence in the future, both by households and by companies and thus affect inflation by influencing demand. Household consumption is also dependent on wealth, which means that property and share prices are important when predicting inflation. Share prices can also be a leading indicator for industrial production and investment. Developments in the stock market influence the will to invest. With the guidelines followed by the Riksbank, the question arises as to the significance of asset prices on inflation, primarily in the time perspective on which we focus, i.e. one to two years ahead. But it can also happen that asset prices are judged not to have such a significant impact in this time perspective, but to have an impact if one looks further ahead. For example, should inflation in two or three years' time be thought to be higher than desirable if it results from various factors driving up asset prices at the current time?
We should have an optimistic view of the future and at the same time make sure our stance is realistic and consistent. Time is ripe for Albania to start producing more goods and services than before. Despite the admirable progress in this context, the gap is still wide. Agriculture and industry remain two important branches of the economy operating far from their potential. Additionally, other sectors that have revitalized during the transition years require more orientation and tuning. These measures will enable better diversification of the Albanian economy, augmenting its stability with the passing of time. Other challenges I believe relate to the country’s external position, implying the reduction of current account deficit and the provision of alternative resources of foreign currency inflows. Therefore, I think that the role of the state needs to be more pronounced, not only in terms of completing the legal and regulatory basis but also of concluding a number of important structural reforms, in particular those related to the land, ownership titles, pensions, to the support of the small and medium-size business, to the further improvement of business environment and the ongoing upgrade of national infrastructure. The further strengthening of safety nets, in the context of a stable fiscal and financial position, is an obligation whose accomplishment would reduce both the real and perceived risk of the Albanian economy, hence creating incentives for the growth of domestic and foreign investments.