failing to pay for the negative externalities they created, some changes in the corporate decision - making are expected. the second point is that “ there is a strong link between financial stability, on the one hand, and capital and financial discipline, on the other. ” a competitive and stable economic framework has to ensure an appropriate balance between rights or liberties and obligations or accountability of entrepreneurs. while many efforts have already been made on the macroprudential side, we should also pay attention to the micro level. when a crisis hits, you have to have your house in order. that means you have to address preemptively your own vulnerabilities. at the heart of any economy lies the capital, which in developing countries is the main factor of production. the quantity and quality of capital ensure the competitiveness of the economy, which creates the conditions for reaching an optimal macroeconomic equilibrium. the segregation between freedom and responsibility at the level of firms seriously undermines the foundation of the market economy and creates deep social disparities. 3 / 4 besides a strong capital base, a fully functional market economy needs strong financial and payment discipline. without these, financial instability would likely appear. * * * and, i would like to conclude by expressing, on behalf of the national bank of romania, our appreciation to all the participants for attending the seminar and to the imf for their constant support in organizing such useful debates. as the purpose of the seminar is to discuss current financial stability challenges and to exchange knowledge in dealing with such challenges, i believe that the objective has been achieved during these two days event. finally, taking into account : first, the issues i have mentioned above ; second, the direct and strong correlation between the capital and the real economy and third, the fact that the distinguished participants who will take part in the next year seminar can offer the possibility to share experience among countries and institutions, i would like to suggest that the 2020 event topic to be “ the capital in the real economy as a cornerstone of the financial stability ”. 4 / 4

target level until the wage gap is closed. for philips curve to work, the loss of welfare from a negative wage gap has to be fully compensated first – as a stock measure, not as a flow. the policy recommendation from here is that countries which closed their wage gap should be much more prudent in further wage increases – because they will be seen in inflation much faster and larger than in the recent past. and for countries which have not closed their wage gap the implication is 3 / 5 bis central bankers'speeches that inflation will remain subdued until this happens. i fully agree with the imf ’ s recommendation that central banks in nms with their own currencies should be alert to the inflation risks of higher wage growth, while bearing in mind that raising policy rates could trigger capital inflows and exchange rate appreciation – which could further deepen current account imbalances. while the real monetary policy stance may differ between euroarea and emerging europe, there is broad heterogeneity even among emerging europe. this is why it is important not to give the wrong incentives to capital flows. this reminds me of my days as a child when, being asked what i want to become when i grow up, i confessed that i wanted to be a firefighter. it turns out that i am now a central banker, which is not far from being a firefighter in these uncertain times. national bank of romania has started the tightening cycle of the monetary policy, to contain the higher inflation and inflation expectations. although most of it is supply - side and temporary, and fighting fiscal loosening with monetary tightening is a sub - optimal policy mix, we considered that the 3 rate hikes we implemented this year were warranted to preserve a hard - fought public good : price stability. coming to an end of my intervention, i would like to express a few thoughts on one of the most important remarks of the reo. it states that “ the recovery provides an opportunity to move faster to deepen the economic and monetary union ”. the report details three lines of action in this regard : completing the banking union, creating a central fiscal capacity, and advancing with the capital union. too much financial innovation, deregulation and the blind, theological belief in self - regulating markets have brought us here, back to the era of re - regulation ; but coordination is needed for that, and glexit is threatening this coordination. it is however undeniable that the completion of the banking union