Vasilescu, BNR: Monetary Policy Not Enough To Control Inflation

05.19.2011 By Florentina Dragu

Romanian central bank’s current monetary policy is insufficient to reign in inflation, particularly in a free market with constant capital inflows that lead to an eventual globalization of the monetary mass, a central bank official said Thursday.

"The economies underwent globalization and so does the monetary mass," said Adrian Vasilescu, adviser to central bank governor Mugur Isarescu.

Speaking at a seminar organized by financial daily Ziarul Financiar, Vasilescu said Romanians should understand that a high inflation doesn't lead to growth.

Vasilescu said the Romanian economy would have emerged from recession as early as 2010, provided the value added tax rate hadn't been increased.

He added that the country could still adopt the euro by its self-imposed deadline in 2015, but only if the society "assumes the target.