Republic of Latvia: Selected Issues

Author: International Monetary Fund

Volume/Issue: Volume 2005 Issue 277

Publication date: August 2005

ISBN: 9781451824568

$20.00

Add to Cart by clicking price of the language and format you'd like to purchase

Available Languages and Formats


English

Prices in red indicate formats that are not yet available but are forthcoming.

Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Exports and Imports , Money and Monetary Policy , ISCR , CR , Latvia , bank , NRDs , credit growth , foreign currency , maturity mismatch , NRD bank , credit expansion , liquidity mismatch , Domestic credit , Credit , Currencies , Current account deficits , Consumer credit , Baltics , Western Europe , Central and Eastern Europe , Eastern Europe , Global

Also of interest

Nepal

Peru

Grenada

Republic of Congo : 2001 Article IV

Summary

This Selected Issues paper seeks to determine the macroeconomic effects of credit growth in Latvia. To do so, the paper relies on two approaches. First, a vector autoregressive system consisting of domestic credit, real activity, inflation, and the current account is used to determine responses to a positive shock to credit growth. It also calibrates the IMF’s Global Fiscal Model to simulate the macroeconomic effects of Latvia’s financial integration with the European Union and developing financial system. The paper also discusses the balance sheet approach to macroprudential vulnerabilities in Latvia.