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One-Pager No. 32 | June 2012

Baltic Austerity—the New False Hope

Ireland was at one time the poster child for fiscal austerity, but that country’s disappointing economic performance of late has left austerity apologists searching for a new model—and the Baltic economies appear to be next in line. But Estonia, Latvia, and Lithuania are as unsuited to stand as successful models of expansionary fiscal contraction and “internal devaluation” as their Irish predecessor.

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Author(s):
Rainer Kattel Ringa Raudla
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Greek

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