) budget balance ( rhs ) - 150 - 2 - 4 - 300 - 450 - 600 - 750 nbs transactions in the fx market, monthly ( rhs ) * eur / rsd, monthly average ( lhs ) * * - 900 - 1, 050 - 6 - 1, 200 source : nbs. * + net purchase ; - net sale. * * eur 1 in rsd. - 8 source : 2014 ministry of finance. - 10 2024 * 2026 * source : ministry of finance. * projection according to the fiscal strategy for 2024 w ith forecasts for 2025 and 2026. ladies and gentlemen, dear colleagues, over the past several years, our economy was exposed to shocks from the international environment unprecedented in the recent history. if we had not reacted duly with appropriate measures, in coordination with the serbian government, these shocks would have left immeasurable negative consequences on our country ’ s economy. the lesson we have learned in these 11 years with me at the head of the nbs is that the measures undertaken and the results achieved are indeed important, but perhaps even more so are the conditions in the country at the moment a crisis breaks out. therefore, it was critical that with appropriate reaction we not only preserved macroeconomic and financial stability, economic growth and the living standard of our citizens, but we also built up reserves to fortify serbia ’ s resilience to external challenges. i will name only two indicators – the country ’ s “ savings ” and the savings of our citizens. the country ’ s “ savings ” or fx reserves, which are a national resource of vital economic importance in hedging against external shocks, were doubled during these 8 of 10 11 years with me leading the nbs. in other words, the stock of reserves we had when i came to the bank is equal to the amount we additionally accumulated in these 11 years, therefore at end - july they measured eur 23. 1 bn. this is their highest level on record, and it exceeds all measures normally used to assess their adequacy ( import coverage, money supply and short - term foreign debt, the imf ’ s ara, etc. ) i need not emphasize how important this fact is in terms of hedging against risks from the international environment and securing overall macroeconomic stability going forward. chart 14 dinar savings chart 13 value and structure of nbs fx reserves ( in eur mn ) securities foreign cash and deposits abroad

##sk optimum ( towards an economic optimum ) ”, in a series of reports by the committee on power and democracy. norway was among the countries that went particularly far in developing an economy with a high degree of centralised coordination and control. it may perhaps be said that this work culminated in the 1973 proposal to establish an incomes policy council. the social partners were to undertake a commitment to keep negotiated wage increases within specific limits. the proposal to establish an incomes policy council was logical. it was the last wall in the structure erected after the war. other elements were : fiscal policy – the management of public spending and revenues – was oriented towards full employment credit regulation within limits specified in a separate credit budget channelling of loans through state banks regulation of cross - border capital movements low nominal interest rates stipulated by the government authorities a fixed, though adjustable, krone exchange rate use of price regulation an active business policy through state ownership and state grants and subsidies. the proposal to establish an incomes policy council did not receive support. there was just too much state control and coordination. today, 40 years later, little remains of the management system that was built after the war. the structure was not sufficiently robust. detailed management and regulation of the economy was not able to deliver sustainable growth and welfare. on the contrary, the result was poor efficiency and wide fluctuations in the norwegian economy in the 1970s and 1980s. the wide fluctuations culminated in a credit boom in the mid - 1980s, which was followed by a banking crisis and a deep recession with high unemployment at the end of 1980s and the beginning of the 1990s. the way the economy is organised has changed considerably over the past 20 – 25 years. it would therefore be incorrect to say that one economic model has applied to norway through the postwar period. experience has shown that fiscal policy alone cannot ensure a high level of employment. the structure of the labour market and of wage formation is probably of greater importance. the direct regulation of credit, interest rates and capital movements broke down and was phased out in the 1980s. the krone no longer has a fixed value relative to other currencies. its value is determined from one minute to the next based on supply and demand. we say that the krone is floating. price regulation no longer plays a role as a macroeconomic instrument. the scope of business policy has become more general. at the same time, the tax system has become more efficient. tax rates are lower and the tax base broader. state ownership in the norwegian business