The speech of a man who understood his own aims, confirming the highest duty of respecting parents, and the fact that work must not be done for the sake of the work, but to add something of value to society, to reality, avoiding live’s and economy’s dessert.
Mugur Constantin Isărescu started his speech referring to these few distinguished personalities mentioned above, remembering than the “Normal School” of Sibiu, his beloved Father Professor and man of culture Constantin Isărescu, and Professor Ion Smedescu, the Founding Rector of the Romanian-American University, both ancestral lamp carriers and keepers of the Romanian spirituality who widely opened up the gates of knowledge management and innovation.
With his well-known competence and refinement, Mugur Constantin Isărescu approached than his dissertation: „Macroprudentiality. Regulation, financial crises and monetary policy”. Professor Isărescu highlighted, in this context, the need for a holistic approach in determining vulnerability, and what it is necessary for both politicians and the public to understand, showing how the coordination of policies is a crucial issue (taking into account that the macroeconomic, macroprudential and microprudential policies should act in concert). The macroprudential policy can achieve a better balance between market discipline and administrative discipline, without trying to provide an excessive protection. However, as performing as the macro prudential policies could be, they cannot be a substitute for good macroeconomic policies. According to his opinion: the central banks should play a proeminent role in all three fields (macroeconomic, macroprudential and microprudential policies); within the new context, the independence of the central bank in what concerns the monetary policy must not only be preserved, but even enhanced, because it has been demonstrated that it provides the basis for healthy, non-inflationary, long-term economic growth.
Continued efforts are needed to create a coherent international framework for crisis prevention; IMF, Financial Stability Board and BIS work together to come up with proposals; they must be based on a number of countries, instruments, practices whose results are known; the process must include testing instruments; international cooperation is necessary to address any systemic risks and to avoid potential conflicts of politics; rules should prevail in relation to the use of discretionary actions; rules ensure against complacency; it is known that macro-prudential policies benefits appear on long-term, which increases the risk of complacency; a certain degree of discretion can be useful if events unfold rapidly and if the sources of systemic risk are subject to change; continuous monitoring of a broad set of information is essential.