Work detail

Baltic States: Lessons from the Crisis

Author: Bc. Jiří Čermák
Year: 2013 - summer
Leaders: doc. Mgr. Tomáš Holub Ph.D.
Work type: Bachelors
Language: English
Pages: 60
Awards and prizes:
Abstract: Between 2000 -2007 Baltic countries were among the fastest growing economies
in Europe, but in 2008 they were struck by very deep recession. Unlike the other
Central and Eastern European countries, the Baltics maintained xed exchange
rate regimes and it raised the question about their e ects on the economies.
This work focuses on the external imbalances of the Baltic economies. It
analyzes the compositions and sources of the current account de cits and
discusses other in
uential factors. Detailed discussion is devoted to the capital
ows and their determinants. The thesis also contains empirical study which
analyzes the relationship between the exchange rate regime and current account
balance. We nd that the current account de cits were not sustainable not only
because of their sizes but also for their structure. The empirical analysis of the
relationship between exchange rate regimes and current account de cits did
not bring clear { cut results which would prove the hypothesis that the xed
exchange regimes negatively a ect the current account balances.


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