Here is the presentation I made today at the NBR. The presentation is in Romanian but I think it is self explanatory most of the time.
The main ideas:
1)financial markets have always been regualted
-regulation has only gotten worse especially after 1997-1999
-but it has not helped
2) Policy makers’ response to crisis is always the same:
– relax monetary policy
– increase government spending
3) It has never worked, only pushed the problem to the future.
4)The conclusion from all this is that we are using the wrong tools to solve economic system crisis
5) It is a structural problem andrequires structural solution
6) Use the survival theory where systems need to be “efficient and resilient”
7) Implement policies that governments and private sector transform accordingly
8 ) For Romania this means lower income and profit taxes, lower social contributions and half the number of public employees.
9) Monetary Policy in Romania needs to focus on keeping inflation low and stable.