Latvia's Recession and Recovery: Are There Lessons for the Eurozone?

This is a panel with Mark Weisbrot and Anders Aslund on the recession and recovery in Latvia, held on April 11, 2012, in Washington D.C.

Latvia suffered some of the worst losses of output and employment during the world financial crisis and recession (2008-2009), pursuing a strategy of "internal devaluation" while keeping its currency pegged to the euro. Some have argued that these losses represent a severe policy failure; while others argue that the country's economic recovery since the 4th quarter of 2009, and other achievements, show that the strategy succeeded. This video presents these two opposing views.

• Category

  News & Politics

[iakovos21]

In 1999 Greece had a 14% devaluation. Unless you were reading the pink pages you wouldn't notice it.

In 2010 Under the IMF a 15% internal devaluation came with 22% unemployment and massive despair, capital flight, lost of production, emigration...

Anyone who thinks internal devaluation is a good idea is delusional . It is the most catastrophic things ever.

[ymydy4]

this vid made it's way to Latvia and it's just matter of time when some parts of this discussion will start rotate on local media

as average person in Latvia i must say that any person who advocates devaluation it concrete case speaks out just his beliefs without any consideration of context and history of region

as 33y old father of 2 i certainly did take huge hits and i feel exhausted even now -but still it's nothing compared to pain and panic what would devaluation bring -believe me i know

[Jeb Sprague]

I hope this video can make its way to Latvia and be seen by social movement and political party activists (with Latvian subtitles?). Most jarring was Anders Aslund's complete ignoring of the social costs of the right-wing policies put in place by the Latvian government (which he has advised over the years). Policy circles and academia need more grounded economists like Mark Weisbrot and the good folks at CEPR.

[marimbadearco]

Beneath Weisbrot's tie are some massive pects!