Blue &Yellow: Politics and Economics in Ukraine

Two years ago, five of the ten new East European members of the European Union – the three Baltic states, Hungary, and Romania – appeared to be devastated by the global financial crisis. Social unrest, huge devaluations, and populist protests loomed.

And then nothing. Today, all of these countries are returning to financial health and economic growth without significant disruption. No country has even changed its exchange-rate regime. Old Europe should learn from New Europe’s untold success.

First, a bit of rubbish. Anders Aslund writing on the eastern Europe states who, he claims, have been successful in dealing with the economic crisis. Curiously he doesn't mention Ukraine, probably because its currency collapsed and its economy sharply contracted. Aslund also forgets to mention the IMF, its boosted resources for combating the crisis or even the EU's bailout of Ireland and Greece.

As Paul Krugman recently posted about Estonia, success is a relative term. 

But the cost of the adventure so far has included a Depression-level slump: GDP is growing again, but only after falling 18 percent. The IMF projections only go out to 2015 — and even then, the Fund expects GDP still to be below its 2007 level. Unemployment, having risen to almost 18 percent, is expected to remain above 10 percent into 2014.