PM: State ready to kick-start economy

BELGRADE Serbian Prime Minister Ivica Dacic has stated that the government was "ready to do everything to kick-start the economic engine, which is currently halted". He also asserted that his cabinet was "at the same time reducing unnecessary expenditures". PM: State ready to kick-start economy In his address prior to a lecture in Belgrade on Wednesday of Nobel Prize winner Paul Krugman, Dacic said that Serbia needs to introduce spending cuts at the state level, as citizens have nothing to save any more. The Serbian prime minister noted that in the circumstances when the private sector is without money or does not want to invest, the state must do that. Dacic said that he talked with Krugman on Tuesday evening, and informed him about the economic situation in Serbia, but that it is not polite to ask him for advice for overcoming the crisis as he saw Serbia's economic parameters for just one day. (Tanjug) The Nobel Prize-winning Princeton economics professor will hold a lecture entitled "Ahead of the Curve" in Belgrade, and present his own view on methods for overcoming the global economic crisis. In an interview to Tanjug, Krugman noted that Serbia should draw on European experience in boosting the economy, on the model of the measures introduced by the European Central Bank. Serbia should be a part of the European solution, and not search for individual measures for stimulating the economy, said one of the world's leading economists. In the same way as an individual state in the U.S. cannot implement the Keynesian policy on its own, the same could be applied to a small state in Europe, he said. Krugman said that small countries with limited economic power, such as Serbia, could try to alleviate the consequences that the crisis may have on their citizens by implementing a responsible economic policy. Serbia's best prospects are still in the European market, but in terms of trade it should use the opportunities in Asia and other regions, Krugman told a news conference in Belgrade on Wednesday. He said at a press conference after the lecture he held in the presence of Serbian officials, businessmen and experts that geographic position is very important, and for this reason the Serbian economy should be focused on the European market. When asked to comment on the Serbian government's economic measures, Krugman said that he had the opportunity to listen about that carefully, but not to make assessments, adding that he also does not have the necessary parameters. "You are not in the worst possible situation, there are countries which are in a much worse position than you, let it say that your situation is similar to the one in Greece," Krugman said. (Tanjug) Tanjug

PM: State ready to kick-start economy

In his address prior to a lecture in Belgrade on Wednesday of Nobel Prize winner Paul Krugman, Dačić said that Serbia needs to introduce spending cuts at the state level, as citizens have nothing to save any more.

The Serbian prime minister noted that in the circumstances when the private sector is without money or does not want to invest, the state must do that.

Dačić said that he talked with Krugman on Tuesday evening, and informed him about the economic situation in Serbia, but that it is not polite to ask him for advice for overcoming the crisis as he saw Serbia's economic parameters for just one day. The Nobel Prize-winning Princeton economics professor will hold a lecture entitled "Ahead of the Curve" in Belgrade, and present his own view on methods for overcoming the global economic crisis.

In an interview to Tanjug, Krugman noted that Serbia should draw on European experience in boosting the economy, on the model of the measures introduced by the European Central Bank.

Serbia should be a part of the European solution, and not search for individual measures for stimulating the economy, said one of the world's leading economists.

In the same way as an individual state in the U.S. cannot implement the Keynesian policy on its own, the same could be applied to a small state in Europe, he said.

Krugman said that small countries with limited economic power, such as Serbia, could try to alleviate the consequences that the crisis may have on their citizens by implementing a responsible economic policy.

Serbia's best prospects are still in the European market, but in terms of trade it should use the opportunities in Asia and other regions, Krugman told a news conference in Belgrade on Wednesday.

He said at a press conference after the lecture he held in the presence of Serbian officials, businessmen and experts that geographic position is very important, and for this reason the Serbian economy should be focused on the European market.

When asked to comment on the Serbian government's economic measures, Krugman said that he had the opportunity to listen about that carefully, but not to make assessments, adding that he also does not have the necessary parameters.

"You are not in the worst possible situation, there are countries which are in a much worse position than you, let it say that your situation is similar to the one in Greece," Krugman said.