Anti-inflation plan: experts’ proposals on boosting of business performance instead of expenses
2008-04-14 Back
Hansabankas and Lithuanian Free Market Institute unveiled an anti-inflation actions plan worked out by a group of experts. The document has been submitted to the Government and placed today on two websites, www.hansa.lt and www.lrinka.lt. In addition, the said plan is set to be shared with overseas financial institutions’ and rating agencies’ specialists who monitor Lithuania’s economic situation.
This anti-inflation plan envisages monetary and fiscal policy’s measures and actions that are believed to harness the inflation processes in Lithuania. Hansabankas and the abovementioned Institute’s experts have proposed labor market/investment/business performance-related actions and measures that are expected to have a long-term and sustainable positive effect on the domestic economic development and stop further rise of prices.
Says Tomas Andrejauskas, Head of Financial Division of Hansabankas; "This anti-inflation action plan prepared by us is based both on the common economic logic which is applied for the formation of a principal attitude to important areas and on concrete proposals on various issues (taxes in particular). As some of the plan’s measures overlap with proposals made earlier, it confirms their potential efficiency. We understand that implementation of certain measures is a complex task as it requires certain political will which may be a "knotty" issue given today’s Lithuanian political situation. We anticipate that the implementation of certain measures can bring about some positive results in the very near future. In our view, implementation of all measures could produce tangible results not only in the area of controlling of inflation but also in laying down of a firm foundation for Lithuanian economic growth in the longer run".
According to Remigijus Simasius, President of Lithuanian Free Market Institute, "the current anti-inflation plan, compared with other similar documents prepared for the Government, pays more attention to abolishing of consumption-related taxes, strengthening of competition and boosting of business performance.
