Page 78 - Ekonomija i Biznis_noemvri 2016.indd

INTERVIEW

consider this a useful policy, some
warn about long-term harmful conse-
quences of questioning the “alpha and
omega” of the stable economic growth
– the high domicile savings.

(photo: http://www.telegraf.rs/) Dj. Gjuric: The next increasing nega-
tivity is produced from a negative tur-
All creators of the economic policy bulence and the savers are punished,
would be cruelly punished because which is considered so called normal
behavior, and the economic science
they didn’t care to offer better says that there are no long-term in-
solution for the depositors who have vestments without long-term table
function of saving, which means that
been saving for years some next generation will pay the high
price for this “dance” of the politicians
of more than 2%, while it is very un- which has not been observed in mon-
likely that Europe, which is under the etary history, to punish the savers with
burden of the past structural distor- negative interest rates, who buy their
tions which it didn’t resolve before the future security with the saving.
crisis as well, it will quickly leave this
track, for the above indicated reasons This is economically suicidal behav-
the corporations do not want to bor- ior, especially for small open econo-
row despite of the interest rates which mies, because if there is no quality
exceed everyone’s imagination, includ- domestic saving, a question is asked,
ing the negative Euribor rate which what the growth will be based on.
was unimaginable several years ago. What is the reaction of the citizens?
The population says no, no, no, and the The households react mostly ratio-
corporations too. nally, some withdraw money in a mat-
tress, while other, which is actually ec-
The attitudes of the economists in onomically suicidal, buy real estate or
regard to the effect of negative interest land considering that in this manner
rates are drastically different. Some they will preserve the real purchase
power of saving. Actually, only a new
balloon would be created, which at the
moment it explodes, many people who
rely on intuition without knowledge
would be overtaken in the same way as
this happened in Spain. All creators of
the economic policy would be cruelly
punished because they didn’t care to
offer better solution for the depositors
who have been saving for years.

Is there such a solution?

Dj. Gjuric: All economists from the
United States, and onward concluded
that the initial trigger is growth of the
investments in infrastructure: renew-
al of roads, hydro and thermal power
plants, however there is no movement.
Why? Because in regard to indebted-
ness, the public sector reached the

78 November 2016