Latvia and Greece: Less is more. CEPS Hi-level Brief, 12 February 2014

Despite considerable differences, there were also many similarities in economic performance between Latvia and Greece before their respective adjustment crises. After the immediate crisis, however, economic activity rebounded sharply in Latvia but continued to contract in Greece. This paper argues that this difference was due primarily to developments in credit. In Latvia credit growth fell sharply, and the economy was deleveraging aggressively by 2009. When the pace of deleveraging started to stabilise, the rebound in the credit impulse caused domestic demand growth to recover. Real GDP has increased about 20% since reaching its trough in the third quarter of 2009.

Greece in limbo: Post-election 2015 scenarios. EPIN Commentary No. 22/ 21 January 2015

In the run-up to elections in Greece on January 25th, this EPIN commentary explores the likelihood and consequences of four potential post-election scenarios: 1. Syriza single-party majority government or Syriza-led coalition government with anti-austerity parties 2. Syriza-led coalition government with pro-austerity parties or Syriza minority government 3. New Democracy government or ND-led coalition government 4. No government is formed.