And the other little things — the 17.5 percent fall in real GDP, the 23 percent unemployment rate? Minor details.Ukraine (15% GDP contraction) only did a a bit better than Latvia (17.5% contraction). So would Ukraine be considered a success story by The Economist?
Actually, as Hugh points out, Latvia is still a long way from having brought prices and wages down to a competitive level. So it’s still faced with the prospect of years of grinding deflation and sky-high unemployment. But it’s a success!
Is Ukraine also a success story?
Labels:
Economy
This from a blog post by Paul Krugman commenting on The Economist article calling Latvia a success story.
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