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Georgescu (BNR): Not any economic growth additional point is desirable if it triggers macroeconomic imbalances
Maintaining macrostability while economy converges to the level of developed countries represents the main challenge for an emerging state, said BNR first deputy governor Florin Georgescu at the conference “Ten years since Romania’s accession to EU: from cohesion to convergence”, mentioning that not any additional economic growth supplement is desirable if it triggers macroeconomic imbalances.
“The full capitalization of benefits of joining the club represented by EU cannot be achieved in the absence of a healthy mixture at domestic policies level. Not any additional economic growth point is desirable if it triggers macroeconomic imbalances. Maintaining macrostability while economy converges to the level of developed states represents the main challenge for an emerging state. In this respect, promoting anticyclic policies is essential,” Georgescu said.
He mentioned that skidding, either at fiscal policy level or that of income policy, cannot be corrected by the other component, by monetary policy or macro-prudential policy.
Georgescu also considers that Romania’s being par to EU brought advantages for per capital GDP for purchase parity, but convergence was not homologated at country region level.