Monday, August 29, 2005


Somebody asked my opinion on the possibility and feasibility of SBY's cabinet reshuffling due to poor performance. The media widely covers this issue of firing the President's economic team. My take is, reshuffle will send a good signal of strong determination by the President. In markets, signal is key. And the market has yet to see an decisive president since the last election: that's not good. However, recent circumstances provide justification (see my next post, above), not to do the reshuffle until at least, the general business cycle shows a more predictable direction. I would say, give them one more year. When the time comes, fire the coordinating minister for the economy, central bank governor, and minister of finance. Dissolve the national development planning agency and assign its current chief to a new post, that is the coordinating minister for the economy. in the meantime, the minister of trade should continue her work on reducing trade price distortions.

Hey, you asked me to opine.

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