Roubini Topic Archive: Baltics
What hand wringing there has been recently on both sides of the Atlantic as the major European economies pursue austerity in their budgets and social programs! But is it not overdone? Europeans and Americans need only look east—to the European Union’s new eastern members—to see that austerity can deliver growth and improve the efficiency of the European economic and social systems.
Latvia, Lithuania, Estonia, Hungary, Romania, and Bulgaria were hit by profound financial crisis in late 2008, but their cure has proven effective. Almost all East European economies are growing and their public sectors have become leaner and more efficient.
The International Monetary Fund (IMF) has had a good year in Eastern Europe. It has been called to help numerous countries and it has acted fast and generously. It has learned several lessons from the East Asia financial crisis of 1997–98, which was very similar. The East European crisis is primarily a current-account crisis, not […]
Op-ed in the Moscow Times: It cannot be denied: Exchange rate policy around the world is confused and lacks theoretical ground. Although the degree of confusion varies, Russia is close to taking the prize. Before World War I, it was easy. Just about everybody used the gold standard, and if any country faced too high […]