One of the clear organisational lessons from the financial crisis was that we, along with many global regulators, spent too little time rigorously challenging the really high impact firms – those firms whose failure, even if low probability, can seriously damage the economy of a country.
In addition to high inflation, households, corporates and government faced unfavourable financing conditions – they borrowed at high interest rates, while dinar instalments of their FX-indexed loans increased also on account of depreciation of the dinar. And then from end-2013 we lowered inflation to around 2%, after which it averaged 2.2% in Serbia, while measuring 1% in the euro area.