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Republic of Lithuania: Selected Issues

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  • International Monetary Fund

Abstract

This Selected Issues paper focuses on sustainability of public finances and low inflation in Lithuania. Lithuania aims to adopt the euro in 2015. Over the medium term, inflation in Lithuania will likely run somewhat higher than in the euro area on average, but this will be driven by continuing income convergence. The long-term inflation track record is favorable, and Lithuania has demonstrated the ability to deliver adjustment when needed without recourse to exchange rate depreciation. The benign outlook for public finances and inflation is contingent on historical patterns of economic policymaking and private sector behavior remaining in place after euro adoption.

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  • International Monetary Fund, 2014. "Republic of Lithuania: Selected Issues," IMF Staff Country Reports 2014/114, International Monetary Fund.
  • Handle: RePEc:imf:imfscr:2014/114
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=41538
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    References listed on IDEAS

    as
    1. Arratibel, Olga & Leiner-Killinger, Nadine & Kamps, Christophe, 2009. "Inflation forecasting in the new EU Member States," Working Paper Series 1015, European Central Bank.
    2. Felix Hüfner & Isabell Koske, 2008. "The Euro Changeover in the Slovak Republic: Implications for Inflation and Interest Rates," OECD Economics Department Working Papers 632, OECD Publishing.
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