Norway has established the Government Petroleum Fund in order to promote long-term stability in government finances and ensure fiscal leeway in the long term. The Government Petroleum Fund also acts as a buffer against fluctuations in petroleum revenues. Swings in oil prices lead to changes in allocations to the Fund. As a large share of petroleum revenues accrues to the state, smaller variations in these revenues will only have a limited effect on the wider economy. This makes the Norwegian economy more robust and in the short term less dependent on oil, at least as long as the government budget is running a substantial surplus. This is part of the reason why Norway seeks to maintain exchange rate stability rather than orienting monetary policy directly towards the objective of price stability. Many countries are struggling with government finances. After several years of large government budget deficits, interest expenditure is laying claim to a considerable portion of tax revenues and thereby limiting the government’s scope for carrying out its tasks. The main challenge to fiscal policy is to eliminate these deficits and reduce government debt and interest expenditure. Norway has had greater fiscal scope for manoeuvre, although this has not solely been used to promote long-term balance. Therefore, Norway established a different division of responsibility in economic policy. As the objective of monetary policy is to maintain a stable exchange rate, fiscal policy has an important responsibility for stabilising the economy.
Gent Sejko: Modernisation of retail payment systems in Albania Welcome address by Mr Gent Sejko, Governor of the Bank of Albania, at the Conference on the "Modernisation of retail payment systems in Albania", Tirana, 21 June 2018. * * * Dear Deputy Prime Minister Dear media representatives, Dear participants and colleagues, Welcome to this conference, whose topic, I would say, is a challenge and promotes the modernisation of the retail payments in Albania. The Bank of Albania has constantly noted in its communications that the safe and efficient development of payment systems is a key objective not only to support monetary policy implementation and safeguard financial stability, but also to serve as an important tool for formalised and sustainable economic development. In addition to the focus on payment systems – as a fundamental pillar for the functioning of financial markets and the economy in general – the Bank of Albania is paying increasingly more attention to their development from the perspective of financial inclusion. The main goal in this regard is the broad use of payment instruments in the everyday life of citizens. This new way of development aims to identify and satisfy the needs of the smallest component of the economy – households and enterprises.