Price stability was not among the functions of central banks in 1900, says Mugur Iserescu, governor of the BNR. “Inflation was low, and that was the result of the gold standard. Central banks were not concerned about price stability,” he said.

According to him, from 1820 after Napoleon, when the gold standard was introduced, until the First World War, it was almost flat (without inflation), up and down.

“Where is the economy regulated? Unemployment, social crises, factories were closing. This is how Marxism appeared, this is how Lenin also appeared: in social issues,” Iserescu said.

• “Let’s not forget that the Budensbank is now only performing a price stability function because Germany has experienced typical hyperinflation.”

• “In 1923, along with German military reparations, a banknote with 24 zeros appeared. Can anyone pronounce it? In the morning you buy a loaf of bread, and in the evening a slice, and the next day you have to change it.”

“When you go through a shock like this as a nation, several generations are left with the idea that the primary function of a central bank should be inflation. When inflation broke out after the collapse of the Bretton Woods system, of course, most countries, including the Fed, switched to targeting financing as their main function, but this is a step in history. History has long cycles. Now we are also at the beginning of the cycle. I don’t know how it will end,” Mugur Iserescu also stated.