Sponsored Links
The International Monetary Fund's conditional financial aid to three Central and Eastern European countries, Hungary, Latvia and Ukraine, may have further hampered these countries, a study by the Center for Economic and Policy Research revealed.
In all three countries there were mistakes in economic policy that increased their vulnerability to external shocks, the report said.
The report said Hungary and Latvia saw a large reversal of capital flows during the world economic slowdown. Ukraine also suffered from a reversal of capital flows, threatening liquidity in the banking system.
The IMF prescribed measures like fiscal tightening in exchange of standby credit arrangements, making the recovery difficult.
In all of these countries, it would appear that there were more sensible responses to the crisis that would have reduced the loss of employment and output, cuts in social services, and political instability that have resulted from the downturn, the report said.
0 komentar:
Post a Comment