Abstract

In the aftermath of the Lehman Brothers’ collapse, emerging Europe was largely spared currency and banking crises, although it could not avoid a deep recession. At the time this was far from obvious. Indeed, there was concern that the region might head for a contagious financial meltdown. The Telegraph saw emerging “Europe on the Brink of a Currency Meltdown” in October 2008. The Economist wondered in February 2009 whether there was an “Argentina on the Danube?” and caught a “Whiff of Contagion” in the air of eastern Europe.

An Account by the Staff of the IMF's European Department
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