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"Currency short-selling should be banned"

PhotoIntervening in the Economic and Monetary Affairs Committee, where Jean-Claude Juncker, President of Eurogroup was present in view of the extraordinary European Council of November 7, Daniel DAIANU underlined:

"We are extremely worried in the emerging economies of the EU about the impact of this financial crisis. Our region could become a major collateral damage of this crisis due to huge volatility in financial markets, speculative attacks on our currencies, the flight of capital and deepening recession. In view of all this I would, among other measures, consider banning currency short-selling in our markets, be it on a temporary basis if things get out of control, - for what Americans and the British have done recently, with prohibiting short-selling of stocks of major banks is quite telling in this regard

Another issue regards the ability to increase the propensity of banks to lend at a time when they are obsessed with recapitalization. As some data indicates, when getting capital injections and being offered special credit lines from central banks, commercial banks might not respond positively to these stimuli...in the sense of not freezing lending".


FOCUS ON

The CEU Press and Center for EU Enlargement Studies organized on Monday, May 25, the book launch of "Which way goes capitalism?" by Daniel Dăianu

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Daniel Daianu launched his book “Southeast Europe and the world we live in” on the 15th of April 2008.