Since 2014
CAUSES OF FINANCIAL CRISIS: THE CASE OF LATVIA
Ekonomika
View Archive Info| Field | Value | |
| Title |
CAUSES OF FINANCIAL CRISIS: THE CASE OF LATVIA
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| Creator |
Klyvienė, Violeta
Rasmussen, Lars Tranberg |
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| Description |
In this paper, we review how Latvia developed during the boom period and discuss the key structural features of the Latvian economy. We show that a combination of monetary and fiscal expansion contributed to a greater vulnerability to external shocks. We also show that the GDP growth was largely driven by capital deepening, while productivity gains played a significantly smaller role. As a result, one of the most important explanations for the exceptionally deep recession in Latvia should be distortions in the non-traded sectors of the economy. Finally, we give a brief analysis on policy measures that have been taken to correct the distortions and possible pros and cons of an external devaluation.
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| Publisher |
Vilniaus universiteto Ekonomikos fakultetas / Vilnius University Faculty of Economics
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| Date |
2010-01-01
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.zurnalai.vu.lt/ekonomika/article/view/988
10.15388/Ekon.2010.0.988 |
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| Source |
Ekonomika; Ekonomika 2010 89(2)
1392-1258 1392-1258 |
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| Language |
lit
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| Relation |
http://www.zurnalai.vu.lt/ekonomika/article/view/988/509
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| Rights |
Autorinės teisės (c) 2014 Ekonomika
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