This report and the Selected Issues paper use a largely standard set of comparator countries. The Nordics are Denmark, Finland, Iceland, Norway, and Sweden; the “Anglo-Saxons” are the majority Anglophone OECD countries (Australia, Canada, Ireland, New Zealand, the United Kingdom, and the United States); the CE4 are the Czech Republic, Hungary, Poland, and the Slovak Republic; and DEU/NLD is the average of Germany and the Netherlands. Comparisons with these and other groups are explored further in the first chapter of the Selected Issues paper.
The Nordic model of “flexicurity” combines generous social welfare policies (supported by high taxes) with very flexible labor and product markets.
European Bank for Reconstruction and Development, 2013 “Transition Report 2013: Stuck in Transition?” London.
Cumulative changes in lending standards (ACLS) are constructed based on financial institutions’ responses to the Survey of Credit Institute Lending in Latvia and the Bank Lending Survey in Lithuania. More negative value of ACLS means a tighter lending standard. For cumulation, it is assumed that the magnitudes of lending standard changes are similar across periods.
For greater detail on the competitiveness improvements in the Baltics, and measures taken to realize these, see individual Article IV reports from 2010, 2011, and 2012, as well as Bakker and Klingen eds., 2012, How Emerging Europe Came Through the 2008/09 Crisis: An Account by the Staff of the IMF’s European Department.
IMF, 2013, “German-Central European Supply Chain—Cluster Report.”