Author (Person) | Hansen, Jørgen Drud, Hansen, Morten |
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Publisher | Centre for European Policy Studies [CEPS] |
Series Title | CEPS Working Document |
Series Details | No.207, July 2004 |
Publication Date | July 2004 |
ISBN | 92-9079-510-7 |
Content Type | Journal | Series | Blog |
From Source URL click on 'Download the document (PDF) for FREE'. Article abstract: For almost a decade all three Baltic countries have witnessed substantial deficits on the current accounts of the balance of payments. This paper discusses whether this situation should be a matter of concern. Recent literature on the sustainability of balance of payments deficits is reviewed and put into a Baltic context. The main conclusion is that the recurrent large deficits in the Baltic countries pose a risk for the fixed exchange-rate policies until the countries adopt the euro. In the longer term, large deficits will influence the time path of convergence of living standards between the Baltic countries and the EU as a whole. |
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Source Link | Link to Main Source http://aei.pitt.edu/6636/ |
Subject Categories | Economic and Financial Affairs |
Countries / Regions | Estonia, Latvia, Lithuania |