Causes and eruption of the financial crisis -- Political economy of crisis resolution -- The exchange rate dilemma -- The banking crisis that never materialized -- International cooperation in crisis -- Why Eastern Europe acted so responsibly -- Eastern Europe and the fiscal crisis in the...

This paper discusses the global financial crisis of 2008/9 in thirteen countries, the ten new EU members that previously were communist and the three countries of Western former Soviet Union. Their problems were excessive current account deficits and private foreign debt, currency mismatches,...