In the wake of the Great Recession, economists, politicians and pundits have battled over how to address weak growth and declining prospects: by stimulus or austerity? IMF economists Olivier Blanchard, Mark Griffiths and Bertrand Gruss delve into Latvia’s recent economic history to understand austerity’s role in the nation’s return to growth. Their findings may not settle the argument once and for all, but getAbstract recommends this well-reasoned, well-researched investigation to readers on both sides of the economic debate.
In this summary, you will learn
- How the Latvian economy swung from boom to bust and back to growth,
- What role austerity policies played in these swings, and
- Whether Latvia offers a model to other struggling economies.
About the Authors
Olivier Blanchard is director of research at the IMF, where Bertrand Gruss is an economist. Mark Griffiths is the IMF’s Latvia mission chief.