Latvia’s Recession: The Cost of Adjustment With An “Internal Devaluation”

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Mark Weisbrot; Rebecca Ray;
  • Subject: IMF, Latvia, EU, exchange rates, peg
    • jel: jel:E | jel:E4 | jel:E42 | jel:E5 | jel:E52 | jel:E58 | jel:O | jel:O5 | jel:O52

The Latvian recession, which is now more than two years old, has seen a world-historical drop in GDP of more than 25 percent. The IMF projects another 4 percent drop this year, and predicts that the total loss of output from peak to bottom will reach 30 percent. This wo... View more
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