Publication:
Latvia's Macroeconomic Options in the Medium Term: Fiscal and Monetary Challenges of EU Membership

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dc.contributor.authorMonga, Celestin
dc.date.accessioned2013-06-21T15:49:11Z
dc.date.available2013-06-21T15:49:11Z
dc.date.issued2004-05
dc.description.abstractLatvia's experience over the past decade shows that economic growth and real convergence can no longer be assumed to be exogenously driven processes determined by given technological improvements and relatively higher factor returns. Instead, it is an endogenously driven process led by many variables, including policy variables. European Union membership clearly brings enormous economic benefits to Latvia. However, it also brings important challenges on the macroeconomic front, especially prior to the adoption of the euro. Substantial progress has been made toward fiscal consolidation since the mid-1990s but several risks remain. Given the facts that domestic demand remains buoyant and that Latvia will have to accommodate the expenditure commitments associated with NATO and EU membership while simultaneously aiming to fulfill the medium-term goal of a balanced budget, a more prudent fiscal policy should be the main short-term policy objective. The authorities should therefore reassess their current medium-term budget framework and strengthen their fiscal rules so that off-budget spending is eliminated and controls over spending ministries and local government finances are reinforced. They should also rethink any further tax reductions until a clear strategy is designed for compensating for projected losses in government revenues. Monetary policy can contribute to sustainable growth and job creation in Latvia in the medium and long term by providing an environment for price stability. It will have to be complemented by further microeconomic reforms and prudent wage developments aligned with productivity growth.en
dc.identifierhttp://documents.worldbank.org/curated/en/2004/05/4101916/latvias-macroeconomic-options-medium-term-fiscal-monetary-challenges-european-union-membership-latvias-macroeconomic-options-medium-term-fiscal-monetary-challenges-european-union-membership
dc.identifier.doi10.1596/1813-9450-3307
dc.identifier.urihttps://hdl.handle.net/10986/14111
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relation.ispartofseriesPolicy Research Working Paper;No.3307
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectADMINISTRATIVE PROCEDURES
dc.subjectAGGREGATE DEMAND
dc.subjectAGRICULTURE
dc.subjectAUDITS
dc.subjectBALANCE OF PAYMENTS
dc.subjectBALANCE SHEET
dc.subjectBANK OF LATVIA
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBUDGET DEFICIT
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL PROJECTS
dc.subjectCAPITAL REQUIREMENT
dc.subjectCD
dc.subjectCENTRAL BANK
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMUNISM
dc.subjectCOMMUNIST
dc.subjectCOMPETITIVENESS
dc.subjectCONSOLIDATION
dc.subjectCONSUMER PRICE INDEX
dc.subjectCORRUPTION
dc.subjectCPI
dc.subjectCROWDING OUT
dc.subjectDEBT
dc.subjectDEFICITS
dc.subjectDEMOCRACY
dc.subjectDEMOGRAPHIC TRANSITION
dc.subjectDEPOSITS
dc.subjectDISTRIBUTION OF INCOME
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC EXPANSION
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC HISTORIANS
dc.subjectEMPIRICAL RESEARCH
dc.subjectEMPIRICAL STUDIES
dc.subjectEXCHANGE RATE
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPORT GROWTH
dc.subjectEXPORTS
dc.subjectEXTERNAL SHOCKS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL
dc.subjectFISCAL ADJUSTMENT
dc.subjectFISCAL BALANCE
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL POLICY
dc.subjectFISCAL RESTRAINT
dc.subjectFISCAL RULES
dc.subjectFISCAL SITUATION
dc.subjectFISCAL STANCE
dc.subjectFIXED EXCHANGE RATE
dc.subjectFOREIGN ASSETS
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN BORROWING
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN TRADE
dc.subjectFORESTRY
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGOVERNMENT DEBT
dc.subjectGOVERNMENT OFFICIALS
dc.subjectGOVERNMENT REVENUE
dc.subjectGOVERNMENT REVENUES
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHOUSING
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINFLATION
dc.subjectINFLATION RATES
dc.subjectINFORMAL SECTOR
dc.subjectINSTITUTIONAL CHANGE
dc.subjectINSTITUTIONAL DEVELOPMENT
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL COMPETITIVENESS
dc.subjectINTERNATIONAL INVESTMENT BANK
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR PRODUCTIVITY
dc.subjectLAWS
dc.subjectLEGAL REFORM
dc.subjectLOCAL GOVERNMENT
dc.subjectMACROECONOMIC PERFORMANCE
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC STABILIZATION
dc.subjectMACROECONOMICS
dc.subjectMATURITIES
dc.subjectMINISTRY OF FINANCE
dc.subjectMONETARY POLICIES
dc.subjectMONETARY POLICY
dc.subjectNATIONAL CONSENSUS
dc.subjectNATIONS
dc.subjectOIL
dc.subjectOIL PRICES
dc.subjectPENSION FUND
dc.subjectPOLICY DECISIONS
dc.subjectPOLITICAL CONSENSUS
dc.subjectPOLITICAL POWER
dc.subjectPOLITICAL UNCERTAINTY
dc.subjectPRICE INCREASES
dc.subjectPRICE STABILITY
dc.subjectPRIVATIZATION
dc.subjectPRIVATIZATION AGENCY
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPRUDENTIAL REGULATIONS
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC ENTERPRISES
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC PROCUREMENT
dc.subjectPUBLIC SECTOR
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL GDP
dc.subjectREAL INTEREST RATES
dc.subjectREAL SECTOR
dc.subjectREAL WAGE
dc.subjectREFERENDUM
dc.subjectREGULATORY FRAMEWORK
dc.subjectSAVINGS
dc.subjectSHORT-TERM DEBT
dc.subjectSOCIAL SAFETY
dc.subjectSOCIAL SAFETY NET
dc.subjectSTATE ENTERPRISE
dc.subjectSTATE ENTERPRISES
dc.subjectSUSTAINABLE GROWTH
dc.subjectTAX ADMINISTRATION
dc.subjectTAX BURDEN
dc.subjectTAX POLICY
dc.subjectTAX RATES
dc.subjectTAX REFORM
dc.subjectTAX REVENUES
dc.subjectTAX SYSTEM
dc.subjectTELECOMMUNICATIONS
dc.subjectTERMS OF TRADE
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTRADABLE GOODS
dc.subjectTRADE BALANCE
dc.subjectTRADE DEFICIT
dc.subjectTRADE FLOWS
dc.subjectTRADE REGIME
dc.subjectTRANSITION ECONOMIES
dc.subjectTRANSPARENCY
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATE
dc.subjectVALUATION
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWTO MACROECONOMICS
dc.subjectECONOMIC MODELS
dc.subjectTAX REDUCTIONS
dc.subjectPRICE STABILIZATION
dc.subjectTRANSITION ECONOMIES
dc.subjectPRODUCTIVITY GROWTH
dc.subjectEUROPEAN UNION
dc.subjectNORTH ATLANTIC TREATY ORGANIZATION
dc.titleLatvia's Macroeconomic Options in the Medium Term: Fiscal and Monetary Challenges of EU Membershipen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleLatvia’s Macroeconomic Options in the Medium Term: Fiscal and Monetary Challenges of European Union Membership
okr.date.doiregistration2025-04-10T09:41:12.717952Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2004/05/4101916/latvias-macroeconomic-options-medium-term-fiscal-monetary-challenges-european-union-membership-latvias-macroeconomic-options-medium-term-fiscal-monetary-challenges-european-union-membership
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid885621468774273359
okr.identifier.doi10.1596/1813-9450-3307
okr.identifier.externaldocumentum000009486_20040609151450
okr.identifier.internaldocumentum4101916
okr.identifier.reportWPS3307
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/06/09/000009486_20040609151450/Rendered/PDF/wps3307latvia.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryLatvia
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicEnvironmental Economics and Policies
okr.topicSocial Protections and Labor::Labor Policies
okr.topicPayment Systems and Infrastructure
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.topicGovernance::National Governance
okr.topicFiscal and Monetary Policy
okr.topicFinance and Financial Sector Development
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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