Growth regressions have provided important insights into the impact of economic reforms on growth in transition economies. Using principal components to decompose reform variables and construct reform clusters, we address unsettled issues such as the importance of sequencing and reform speed....

The energy crisis has meant dramatically higher prices on energy in the Baltic states, and led to very high inflation and lower growth. Short-term measures must cap extreme energy prices, monetary policy must avoid deepening the living cost crisis. Policies to diversify energy supplies are...