Lessons from the East European Financial Crisis, 2008-10 (original) (raw)

The paper discusses the financial crisis that hit Central and Eastern Europe from 2008 to 2010, focusing on the rapid escalation of economic instability in countries like Latvia and Estonia, which experienced severe overheating prior to the crisis. Following the bankruptcy of Lehman Brothers, these economies faced immense challenges due to a sudden lack of credit and liquidity. However, the crisis was notably resolved with effective stabilization programs, primarily led by the International Monetary Fund and the European Union, highlighting the importance of decisive policy interventions. Key lessons from this financial turmoil are identified, offering valuable insights for both the European Union and the global community.