Comments on: The IMF/EU Commission Rift On Latvia Seems To Be Deepening

By: govs from Latvia

govs from Latvia — Sun, 19 Jul 2009 12:57:15 +0000

However, I can hardly see a big beneficial role of labour migration for crisis control. Ireland has a high migration factor and is located in EUR zone, at the same time it is an economy most hit by the recession.

For me migration is a positive factor of only second order, and only in long run. At the moment short term problems as banking faults prevail. http://www.irishtimes.com/newspaper/finance/2009/0504/1224245890044.html

By: govs from Latvia

govs from Latvia — Sun, 19 Jul 2009 12:52:57 +0000

Dear Ian,

yes, I mean that. The mobility factor is about 20% for Latvia, mainly Latvians working in the EU, but also EU personnell in Latvia.

Unfortunately with the advent of crisis it becomes unidirectional.

Also historically, during Soviet period ca 40% of workforce was based on migration.

By: Ian Stuart

Ian Stuart — Sun, 19 Jul 2009 12:35:11 +0000

Dear govs

You misunderstood me, I am referring to labour mobility between Latvia and the Euro Zone not within Latvia.

By: govs from Latvia

govs from Latvia — Sun, 19 Jul 2009 11:53:46 +0000

Dear Ian,

labour mobility for Latvia traditionally is very high, much higher as in parochial Western European societies.

By: Ian Stuart

Ian Stuart — Sun, 19 Jul 2009 03:21:51 +0000

Even a first year economics student knows about optimal currency areas. Latvia, and most of the other aspiring members, does not come close to satisfying the requirements regarding convergence of their economy and capital and labour mobility for membership of the Euro; neither do a lot of the existing members. The straitjacket imposed by the Euro will become increasingly constricting and I expect at least one of the existing members to drop out at some stage. When will politicians accept that you cannot legislate economic behaviour?

By: Cronomy

Cronomy — Wed, 15 Jul 2009 18:36:17 +0000

[...] The IMF/EU Commission Rift on Latvia Seems To Be Deepening – sažetak stanja u Litvi od prije dva dana isto via Edward Hugh [...]

By: Edward Hugh

Edward Hugh — Wed, 15 Jul 2009 09:18:50 +0000

Thanks for this LA. I am just posting on it. Why haven’t you joined my Facebook, this is where all this is being discused?

By: The IMF/EU Commission Rift On Latvia Seems To Be Deepening | Distressed Marketplace

Wed, 15 Jul 2009 09:13:06 +0000

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By: Latvian abroad

Latvian abroad — Wed, 15 Jul 2009 08:38:41 +0000

Dombrovskis says IMF has come up with a new set of demands for Latvia:
http://www.delfi.lv/news/national/politics/article.php?id=25675223
There’s no public information about what they are. But our political elite looks deeply shocked.

By: charly

charly — Tue, 14 Jul 2009 16:25:35 +0000

Forgot about tax. When you devalue income stays the same so stays in the same income brackets thus same tax income. “Internal devaluation” lowers tax income much more

ps. I have the feeling that this is class warfare. Internal devaluation is good for those with money, external devaluation is better for the poor (and those with loans)