TY  - BOOK
AU  - Purfield,Catriona
AU  - Rosenberg,Christoph B.
TI  - Adjustment Under a Currency Peg: Estonia, Latvia and Lithuania During the Global Financial Crisis 2008-09 
T2  - IMF Working Papers; Working Paper
SN  - 1455205443 :
SN  - 1018-5941
PY  - 2010///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Benefits
KW  - imf
KW  - Boom Bust
KW  - Competitiveness
KW  - Fiscal Balance
KW  - Global Financial Crisis
KW  - Internal Devaluation
KW  - Estonia
KW  - Lithuania
N2  - The paper traces the Baltics' adjustment strategy during the 2008-09 global financial crisis. The abrupt end to the externally-financed domestic demand boom triggered a severe output collapse, bringing per capita income levels back to 2005/06 levels. In response to this shock, the Baltics undertook an internal devaluation that relied on unprecedented fiscal and nominal wage adjustment, steps to preserve financial sector stability as well as complementary efforts to facilitate voluntary private debt restructuring. One-and-half years on, the strategy is making good progress but not yet complete. Confidence in the exchange rate was maintained, the banking system was supported by its parent banks, external imbalances and inflation have largely disappeared, competitiveness is improving, and fiscal deficits are gradually being brought back towards pre-crisis levels. However, amid record levels of unemployment, further reforms are needed to foster a return to more balanced growth, fiscal sustainability, and a healthier banking system
UR  - http://elibrary.imf.org/view/IMF001/11285-9781455205448/11285-9781455205448/11285-9781455205448.xml
UR  - http://www.imfbookstore.org/IMFORG/9781455205448
ER  -