Isarescu: There’s No Predetermined Economic Growth Model

05.25.2011 By Florentina Dragu

The economic growth model is not predetermined, but is based on the decisions of private investors and on macroeconomic policies, Romanian central bank governor Mugur Isarescu said Wednesday.

"I think we have to be very careful when talking about an economic growth model, so there are no misunderstandings about it being predetermined. The model reflects a variety of decisions made by private investors and another variety of macroeconomic policies through which the state can indirectly influence economic growth on the long run," Isarescu told an economic seminar.

He mentioned a series of debates about the opportunity of changing Romania's economic growth model, after excessive consumption has led to economic overheating in 2007-2008.

"These debates can lead to erroneous conclusions, including one that there is someone who can just press a button and determine an economic growth based on exports or investments," Isarescu said.

In a free market is nearly impossible to intervene directly on the economic growth model, he added.

"The state has the ability to make indirect interventions and the growth model is a result of those interventions; it's not a predetermined factor," Isarescu concluded.