Get real time updates directly on you device, subscribe now.
The greatest benefit achieved by Romania in relation with the IMF is that the institution has assumed the role of coordinating economic policies, said on Wednesday the National Bank of Romania Governor Mugur Isarescu, referring to the need for economic policies’ right dosage, given that structural reforms continue to be delayed.
“How did the IMF help us most, should I give a verdict after many years of collaboration with them? It helped us by the fact that the policy mix has had a certain consistency. Because we do not really talk to each other we face problems of later feudalism, so to speak. They went from place to place, from institution to institution and said “what you do not is not really related to what the other makes,” said the BNR governor.
In his view, structural reforms are still the most delayed. Trying to counteract the effects of delays with fiscal and monetary levers could lead to bigger problems.
“Most delayed are the structural reforms. In vain one is trying to pull the fiscal and monetary levers, from a certain point onwards it’s like taking a drug in excess to compensate another one. No! If the dosage is not good, you get intoxication or something worse,” said Isarescu.
According to the BNR Governor, the dosage of the economic policy measures is more important than each measure.
- Advertisement -