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Economic analyst Adrian Câciu explains what Romanians should do in the context in which financial analysts speak of the economic recession and the depreciation of the leu, but also what measures the state and businessmen should take to support purchasing power.
Adrian Câciu, economic analyst, explained exclusively for DC News which will be achieved in the context in which the euro continues to rise and the economy is in decline.
“We should start to get used to not panicking when the euro exchange rate rises. Every year, if we look at the last 15 years, the Euro-Leo exchange rate has increased by about 2% per year. So every year We expect the value at the end of the year to be 2% higher than the value at the beginning of the year These things can be verified, the data is public in the National Bank. Any effect on the market and on prices, but also on wages, has somewhere been offset over time by employers, who have increased wages at least by the rate of inflation. If they didn’t, this is a problem the employee should complain about.
What to expect
The anticipation made by the CFA specialists is correct, from my point of view, but we have to look at it exactly as they say, in the sense that this exchange rate of 5 lei / euro will be somewhere in 12 months. It will not be immediately. Therefore, we should not expect very rapid price increases or a higher burden on citizens’ spending.
Furthermore, all of Europe has entered a deflationary zone. Inflation ends up in negative territory, which means that imports will also be priced lower. Add up these factors, that what comes from imports with a not very large depreciation, 10 in money, is not likely to generate large imbalances. But what you have to do is keep the purchasing power constant and for that to happen employers need to raise wages and even the state to support this“Said Adrian Câciu exclusively for DC News.
What should the population do?
Adrian Câciu was also asked what individual measures each person should take to avoid feeling the economic changes.
“People should save as much as possible. I like that financial education programs have appeared and I recommend everyone to watch them. We normally consume 30% more than we need. If we made a calculation in the crisis situation, we would see that we would give up many things that, before the crisis, we would buy. If we began to be more responsible with our own consumption, at home, in the family, we would have more money to save.. When you have more money to save, those shocks, even the smallest ones, can’t catch up with you. The discussion here is for those who have a decent standard of living.
Citizens, neglected by the state
Those below the income limit must be supported by the state. So here the state has neglected its poor citizens. We are not in a comfortable situation. We are at a 20% level with citizens in extreme poverty. 20% of the population means almost 4 million people. It is a lot, and the State must propose intervention policies, redirected to these disadvantaged categories. They feel the strongest. I feel any price fluctuation much stronger than the one that has a decent standard of living “, Adrian Câciu also explained to DC News.
SEE ALSO: Financial Analysts Announce 5 lei / EURO! Is an economic DISASTER coming?
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