The second is that the calculation of the rule – or policy reaction function – is extraordinarily complex. Moreover, these two problems interact, in that the complexity of the decision rule is increased enormously when the possibility of learning about the true model is introduced. So although policy rules offer important insights they do not provide a practical guide to decision-making, and it is useful to examine more deeply why that is the case. No economist can point to a particular model, and in honesty say “that is how the world works”. A crucial difference between economic and, say, meteorological analysis is that in economics there are no natural constants, not even for the natural rate of unemployment. Our understanding of the economy is incomplete and constantly evolving, sometimes in small steps, sometimes in big leaps. The stock of knowledge is not static. So any monetary policy rule that is judged to be optimal today is likely to be superseded by a new and improved version tomorrow. In other words, there is no time-invariant policy reaction function which could describe the policy intentions of a central bank. Rather, monetary policy in practice is characterised by a continuous process of learning embedded, in the case of the Bank of England, in the rounds of meetings and forecasts that are the daily life of the Monetary Policy Committee.
It is also encouraging to note that the report makes a similar positive assessment for a group of reforms undertaken by the Albanian government and other authorities in the area of market liberalisation, privatisations, energy sector and infrastructure. 1/2  BIS central bankers' speeches  Looking ahead, the report assesses objectively the global macroeconomic environment as overall favourable. The nature and origin of capital flows toward the transition economies is immune from the adverse effects from the Brexit or increase in interest rates in the US economy. For the Central and Southeastern Europe, during 2017, the economy is expected to grow faster, driven by domestic factors and a slight and stable improvement of the economic situation in foreign trading partners. The main risks relate to the performance of commodity prices, and in particular to geopolitical and global economic developments. The deepening social inequality is an issue of particular concern that has been present across the board in transition countries. The report evidences that inequality in the economy, in terms of opportunities and financial inclusion, has been expanding, contributing negatively to economic welfare in transition countries. Finding solutions is a difficult challenge, with financial education and financial inclusion considered as tools for addressing this issue successfully. I would like to take advantage of this opportunity to emphasise that the Bank of Albania and the banking system are paying particular attention to these two topics.