This paper uses VAR models to examine the magnitude and sources of growth spillovers to the Baltics from key trading partners, as well asfrom the real effective exchange rate (REER). Our results show there are significant cross-country spillovers to the Baltics with those from the EU outweighing...

The paper examines labor market developments in the four hard-peg European Union (EU) accession candidates during transition, with a view toward understanding the persistent high unemployment experienced in each country. Despite the significant levels of unemployment in all four countries, labor...

Despite their increasing fiscal burden, the public pension systems of BRO countries are failing to provide adequate social protection. Although there is a broad consensus about the need for pension reforms, BRO countries are debating whether to embark on systemic reforms or whether to correct...

Large current account deficits in Estonia and Latvia, and the continued real appreciation of the exchange rate in Lithuania, have prompted concerns about the competitiveness of the Baltic economies, and called into question the sustainability of their current fixed exchange rate arrangements....

The latest in a series of papers published by the International Monetary Fund on economies in transition examines the experience of disinflation in Central and Eastern Europe, the Baltics, Russia, and other countries of the former Soviet Union between 1993 and 1997. The paper reviews the...

Are the three Baltic countries, Latvia, Estonia, and Lithuania, ready for accession to the European Union? Have their economies overcome the problems of transition? The answers to these questions and their implications for policy are provided in this collection of analyses. Rather than a...

KEY ISSUES The Baltic economies have performed well in the last two decades relative to other transition and emerging market economies, but they face some common challenges calling for national and regional policy responses. These challenges relate to their ability to sustain economic growth...

This Selected Issues paper focuses on the Baltic model, Baltic-Nordic links, and convergence. The Baltic countries form a distinct group within a tightly integrated Nordic-Baltic region. They are following similar approaches to economic policy, broadly in line with those of Northern European and...

While the unemployment rate in the Baltics has fallen sharply from its crisis-peaks, it remains close to double digits. This paper estimates the structural component of the jobless rate in the three Baltic countries and analyzes its causes. Our main findings are that the current still elevated...

The euro area periphery countries and the Baltic countries, which had large current account deficits in the run-up to the crisis, needed adjustment of relative prices to achieve both internal and external balances. Thus far, tangible progress has been made through lower wages and/or higher...