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Public Finances and Fiscal Policy in the Baltic States 1991–2015

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  • Karsten Staehr

Abstract

This paper discusses the developments in public finances and fiscal policy in the Baltic states since the countries regained independence in 1991. The Baltic states have relatively small public sectors and maintain a limited role for government, in part reflecting the market-oriented economic model emerging from the transition process. The fiscal stance has generally been prudent but Estonia stands out for having an essentially balanced budget every year. The fiscal policy stance exhibits limited counter-cyclicality and has even been pro-cyclical at times, including during the pre-crisis boom. The upshot is that a number of key challenges remain for fiscal policy-making in the Baltic states.

Suggested Citation

  • Karsten Staehr, 2016. "Public Finances and Fiscal Policy in the Baltic States 1991–2015," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 8(1).
    • Handle: RePEc:ttu:rebcee:73
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    References listed on IDEAS

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    7. Olivier Blanchard & Mark Griffiths & Bertrand Gruss, 2013. "Boom, Bust, Recovery: Forensics of the Latvia Crisis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(2 (Fall)), pages 325-388.
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    Cited by:

    1. Karsten Staehr, 2017. "The Choice of Reforms and Economic System in the Baltic States," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(4), pages 498-519, December.
    2. Abuselidze, George & Mamuladze, Linda, 2020. "The Peculiarities of the Budgetary Policy of Georgia and the Directions of Improvement in Association with EU," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 73.

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