Dr Alexander Mirtchev Warns Against the Mid and Long-Term Repercussions of Unbalanced and Even Mindless State&act=print

Alexander Mirtchev, Washington-based economic strategist and expert,reviewed the actions of governments in the emerging markets in support ofthe beleaguered financial sector and their potential effects withMergermarket, the partner publication of the Financial Times. Dr. Mirtchev explained that governments had little choice in taking urgentmeasures to the financial crisis. "With the crisis looming, it was notpossible to stick to ideological positions or specific doctrines -- you donot consider the price of the carpet you are using to put out the fire inyour house," said Mirtchev. However, he believes that it is high time tolook beyond the immediate short-term pressures, and devise a broaderpolicy response that would address the long-term needs to encourageproductivity, competitiveness and growth. He is of the view that, whendevising such strategies, governments have to take into account the trulyglobal helikopter remot black wolf nature of today's financial system. "The world financial systemhas evolved to the point where no economy functions as a closed circuit.Economic interaction in a specific market cannot be considered a zero-sumgame." In the case of emerging markets such as India, China, Mexico,Indonesia and others, "participation and integration in the globalfinancial system makes sense," in particular with a view to theproductivity and growth-generating role that these markets have in theworld economy. He considers that cree xm-l t6 led in the short-term direct government support andrecapitalization can help banks and institutions continue their functionas the mechanism that pumps capital throughout the global economy, and itseems already unavoidable. However, the key is, at the end of the day, toface the reality of the newly emerging global financial system of korean men clothing the XXIcentury, not to try and "put the genie back in the bottle" by returning tothe model of the 1990s, and jumpstart the new, inclusive financial orderthat could accelerate the recovery and sustain growth.