Easier to slip into recession today than in 2008

The crisis had a major negative effect on the Romanian economy: it had lowered the potential GDP. While mostly a theoretical concept it is not hard to feel that this is true. The potential GDP is that value around which an economy can grow employing all available resources and not create inflationary pressures.

What if there is another way? A better one

There is not a day that goes by without finding out some information that brings to the forefront the bond created between the banking sector and the state. The latest such information was provided by Bloomberg showing that in 2008 US banks borrowed 13 billion USD to survive. This was secret information until made public Bloomberg after a lengthy legal battle.

Now, the information is interpreted in various ways. The most prevailing one is saying that this is how a lender of last resort should act and should be a lesson to the ECB. I beg to differ.