Comments and Discussion

摘要

This paper by Olivier Blanchard, Mark Griffiths, and Bertrand Grass offers an excellent and accessible description of the macroeconomic boom-and-bust cycle in Latvia from 2000 to 2012. It presents the key facts and data as well as is possible given the serious data challenges. It provides an unbiased analysis of different explanations for the country's crisis and recovery, which is much appreciated, given how heated macroeconomists' discussions on what actually happened in Latvia often have been. Nonetheless, many readers of this volume may still be wondering, "Why Latvia?" Why should this distinguished group of authors and scholars dedicate an entire session to understanding the details of a small country that operated under a number of unique circumstances-especially during a period when many larger and more systemic economies were under severe economic distress? I will begin by answering this question and explaining why Latvia's experience is worth closer investigation. I will then discuss three major insights from the paper-as well as the follow-up questions they inspire.