The Baltic economies in transition

Abstract

The book offers a survey of current economic conditions in the Baltic states, examining the problems that these countries are facing as well as their achievements to date.It begins by analyzing the initial conditions for transition in the Baltic states and the current economic situation.Macroeconomic stabilization is the cornerstone of a successful transition to the market economy, and therefore monetary and financial developments are central to the book.The discussion begins with a survey of one of the greatest success stories of the Baltic transition, the introduction of national currencies.Next, the fiscal and monetary policies pursued in these countries are studied, and Latvian fiscal policies are presented as a special case.Estonia has advanced the farthest in the development of the banking sector, and so Estonian experiences in this area are analyzed thoroughly.The book concludes with a wider theme: a discussion of the development of private initiative and its prerequisites in the Baltic states.