To what extent did austerity help the Baltic States recover from the economic financial crises in 2008? A comparative study of the Baltic States between 2007 and 2012.
In the light of the 2008 financial crises, Estonia, Latvia and Lithuania experienced the greatest output declines in the world. In 2012 however the output gap has almost been reduced, competitiveness is regained and the budget balance deficit is kept within the requirements of the EU Maastricht criteria. These achievements were reached by conducting the controversial fiscal stance of austerity, im