A bigger base number, coupled with slower productivity growth and demographic changes, will naturally lead to somewhat slower potential growth. The demographic changes will also have implications for supply and demand. In an aging society, growth driven by capital and labor inputs is hard to sustain.
Let me emphasize some issues here: •  I talk to the Minister of Finance just often enough and the coordination is fine;  •  I do not judge the work of the Government based on public statements because it is simply impossible, but based on concrete numbers;  •  I do not agree with several steps the Government is taking in the area of enterprise restructuring and fiscal policy, but I do not hide it and, whether I like it or not, the Government is independent and responsible not to the National Bank of Serbia but to the Parliament;  •  Journalists are masters in provoking quarrels between Government (Minister of Finance) and Governor, but I do not see that myself or the institution could benefit from it, as the National Bank is not running for seats in the parliament;  •  And yes, there is too much burden on monetary policy and the central bank and I would love to get a helping hand;  •  Last but not least, I am also aware that if inflation comes down it will happen only “thanks to the tough fiscal stance of the Government” but if it remains high it will be “due to the not restrictive enough monetary policy”.