Free Markets!
The economic crisis should be regarded as an unavoidable consequence and hence a “just” price we have to pay for immodest and over-confident politicians playing with the market. Their attempts to blame the market, instead of blaming themselves, are unacceptable and should be resolutely rejected. The Czech government will – hopefully – not push the world and Europe into more regulation, nationalisation, de-liberalisation and protectionism. Our historical experience gives us a very strong warning in this respect.
Looking for ways out, we should – to use an analogy – strictly differentiate between fighting the fire and drafting fire protection legislation. We have to concentrate on the first task now; the second one can be done gradually, without haste and panic. A big increase in financial regulation, as is being proposed so often these days, will only prolong the recession. Growth in the global economy is falling rapidly, the banks have ceased to grant credit and confidence is ebbing. Radically changing regulation governing financial institutions in the midst of recession is counterproductive.
- Vaclav Klaus, 'Do not tie the markets – free them'.
Looking for ways out, we should – to use an analogy – strictly differentiate between fighting the fire and drafting fire protection legislation. We have to concentrate on the first task now; the second one can be done gradually, without haste and panic. A big increase in financial regulation, as is being proposed so often these days, will only prolong the recession. Growth in the global economy is falling rapidly, the banks have ceased to grant credit and confidence is ebbing. Radically changing regulation governing financial institutions in the midst of recession is counterproductive.
- Vaclav Klaus, 'Do not tie the markets – free them'.
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