Vladescu seen as controversial figure by analysts

The economic vision and the inflation and budget deficit compromises that Sebastian Vladescu, proposed for Finance Minister, is willing to make, have prompted harsh reactions among analysts. On the other hand, his experience and involvement in international projects are cited by those who consider him a “valuable economist”. “I found his statement on inflation very odd and dangerous (Vladescu said inflation is the only thing that doesn’t hurt, while sending people home does), showing very clearly that his grasp of economic fundamentals is not very firm. Inflation is a dangerous phenomenon that affects all of us, while the salary cut affects only a segment of the population,” says Laurian Lungu, managing partner at Macroanalitica research firm. Whilst the strategy of the National Bank is to target inflation, the new Finance Minister maintains that stimulating economic growth is much more important at this time. “And he is right. Finding a way out of the crisis is the most important thing right now,” says academician Lucian-Liviu Albu. Asked if fiscal policy (which is the realm of the Government) needs to be harmonised with the monetary policy (set by the Romanian central bank), Albu says they are not harmonised anywhere in the world, in fact. “During these times and in a country like ours, it is difficult to harmonise them. Policies are likely to be harmonised in prosperous times, they did become better fitted in Romania in the past.” Albu says Vladescu belongs to the neoclassical school and is a valuable economist, who has been involved in international projects.