Global crisis and economic process in Lithuania and other Baltic countries

Gediminas Davulis

Abstract


The article deals with the main reasons of financial and economic crises as well as their consequences. The links between real estate markets and markets of securities, credit expansion and growth of investment are described. It is shown that the processes in real estate and securities markets inflated the prices of real estate and created the so-called real-estate bubble the burst of which was the main reason of the global financial crisis. The main anticrisis measures in the EU and USA are presented. The situation of Lithuania in the context of the global crisis is discussed. The concrete factors that have caused the economic crisis in Lithuania are analysed. The means of the government’s economic policy in Lithuania and other Baltic countries are discussed in the context of the global crisis. The analysis of the indices of macroeconomic processes in the Baltic countries showed that economic processes were similar without essential differences in all Baltic countries. The analysis showed that economic revival of the Baltic countries will depend both on the foreign market restoration and restoration of the domestic markets and modernisation of production.

Keywords


anti-crisis measures; economic policy; global financial crisis; macroeconomic processes in the Baltic countries

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"Business Systems & Economics" ISSN online 2029-8234