This is a bit dated, and I'm not sure how I missed it, but the Head of the Central Bank of Estonia (Eesti Pank) said in April that part of the reason for the Baltic success in bouncing back from crisis was the fact that they did the adjustment rapidly. That is, in a quasi-Misesan framework, they took their punches quickly and let the malinvestment work itself out, rather than try to prop up the creaking edifice with inflated currency ( I say "quasi" because, while Estonia is pretty good in terms of its liberal policies, it still is part of the EU and was pretty far from the frontier in terms of its fiscal and monetary policies). As you may or may not know, I studied under the architect of "shock therapy," Leszek Balcerowicz, at the Warsaw School of Economics, and it has been those countries that reformed the fastest that saw the most success. Estonia once again confirms this.
Dr. Christopher Hartwell is an institutional economist and President of CASE Warsaw. All commentary on this page is exclusively his own and in no way represents the views of CASE, his wife, his dog, or anyone else. Especially not his wife or his dog.