Cover IMF Staff Country Reports
Republic of Latvia: Selected Issues
Author:
International Monetary Fund
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2005: Issue 277
Language:
English
Publication Date:
10 Aug 2005
DOI:
https://doi.org/10.5089/9781451824568.002
ISBN:
9781451824568
ISSN:
1934-7685
Pages:
32
Keywords:
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
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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.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund
Volume 2005: Issue 277