MACROECONOMIC CONSOLIDATION: ACHIEVEMENTS AND CHALLENGES

In this discussion authors analyse the process of macroeconomic stabilisation during the transition period and Albania’s successful achievements to reducing and controlling inflation; relatively high rates of growth; gradual decline of budget deficit and relative stabilisation of exchange rates. From this point of view, we analyse the role of monetary and fiscal policies; external variables of structural and institutional reforms; and the role of international institutions such as IMF to achieve and sustain the macroeconomic stabilisation. The main conclusion is that this success is mainly due to the application of prudent monetary and fiscal policies and relatively fast and substantial structural reforms. Macroeconomic stabilisation that contributes to growth, which on the other side makes it sustainable, cannot be maintained without having political stabilisation and long-term and consistent economic growth. 272 I