Romania To Resume Growth With 1-Yr Delay - Ctrl Bkr

The great financial meltdown has hit Romania with a delay of one year, one year and a half and so the country is bound to experience a lag in recovery of eight to 12 months compared with the more developed economies, a central bank official said Wednesday.

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"Just as the crisis has hit on four channels, namely trade, (consumer) confidence, exchange rate and financing, I believe the same channels will contribute symmetrically to the revival," said Lucian Croitoru, adviser to the central bank's governor.

However, Croitoru believes the main culprits for the economic crisis are the governments and financial institutions.

"The first lesson is that the capitalism is not to blame for the crisis, but those who manage it, namely politicians, central banks and supervisors," he said.

The central bank's official said adopting a Keynesian policy to increase governmental authority on the economy would be a step in the wrong direction, as such a measure could only lessen the economic confidence and lead to a higher inflation.

Croitoru said it is only natural for people to act irresponsible during economic booms, as they believe the growth period will never end.

"In conclusion, we will face new crises, because it's human nature to think that flourishing periods will never end," he said.

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