President Learns Late Of Encumbered Emission

According to Interfax Ukraine, this response will consist of measures to do with emission, but which will "by no means affect the inflation process," since "encumbered assets will be involved." Mr. Kuchma also stressed that he mentioned cranking up the currency printing presses only as a theoretical possibility. The fact remains that the possibility of emission was openly discussed long before the financial crisis reached its peak (and The Day was no exception), but the President and his entourage pretended to look the other way. Yaroslav Zhalylo of the National Institute for Strategic Studies, speaking at a round table on Safe Economic Transformation last July 15, stressed that investments should be made in priority sectors capable of showing economic growth. Hardly three months later his conclusions, transformed as an "encumbered emission" reached the President's ear.

The Day experts do not rule out the possibility that by the time the authorities get around to taking some steps in this direction a new economic theory will have received priority. One thing the President is perfectly right about is that changes on the financial market must be quickly responded to. Leonid Kistersky, Ph.D. (Economics), believes, in particular, that if such steps are taken not before but after the fact, the inflation process will become Тunencumbered,У i.e., uncontrollable.