Romanian Ctrl Bk: Stimulating Consumption, Bad Idea For Economy

„Stimulating consumption to resume economic growth can only be qualified as a bad idea, as it can’t be put into practice. Romanians must be allowed and stimulated to work in order to boost production, while the consumption will increase mainly in the areas that witness production growth, such as exports,” Isarescu told a banking seminar.

He said stimulating consumption as grounds for economic development is a „dangerous idea”, because of its social and political implications.

„Why stimulate consumption when the internal production was 14% lower (than consumption)? This would bring us back to the same old problem – sustainability,” Isarescu said.