UID:
edoccha_9958124935402883
Format:
1 online resource (58 p.)
ISBN:
1-4623-4867-X
,
1-4552-4351-5
,
1-283-55994-3
,
1-4552-8386-X
,
9786613872395
Series Statement:
IMF working papers ; WP/10/213
Content:
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.
Note:
"September 2010."
,
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; 1. The Baltic Countries at the Eve of the Crisis; II. From Boom to Bust-A Chronology; A. The Early Transitions; B. The EU Membership Boom; 1. Baltic Boom and Bust, End 2003-09; 2. Financial Sector Developments During the Boom, End 2003-08; C. The Fallout from the Global Crisis; 3. Output Declines in the World, 2008-09; 4. Baltics 5-Year Credit Default Swaps; III. The Baltic Adjustment Strategy; 5. How Policy Challenges Compare Across Baltics, 2004 and 2009; IV. Is It Working? Early Experience Implementing the Baltic Strategy
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A. Fiscal Adjustment6. Developments in General Government Fiscal Balances, 2004-09; 7. Fiscal Deficits and Debt in Europe, Pre and Post Crisis; 8. Government Spending Boom; 9. Revenue Buoyancy in Reverse; 2. Comparison of the 2009 Fiscal Positions Across the Baltics; 10. Large Scale Fiscal Adjustments; 3. Size and Composition of Fiscal Adjustment Across the Baltics; 11. EU Funds, 2006-10; B. Labor Market Adjustment; 12. Manufacturing ULC-based REERs, 2000-08; 13. Labor Market Trends in the Boom and Bust, 2004-08; 14. Hourly Labor Costs; 4. Nominal Wage Adjustment in the Baltics, 2004-09Q4
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15. Unemployment Rate of Youth Aged 15-30C. Maintaining Financial Stability; 16. Comparing Banking System Before and After the Crisis; 17. Non-Performing Loan Ratios in Select Emerging Markets; D. Repairing Corporate and Household Balance Sheets; 15. Gross FX Liabilities of Non-financial Private Sector; V. Early Policy Conclusions; References; Footnotes
,
English
Additional Edition:
ISBN 1-4552-0544-3
Language:
English
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