The Economic Crisis in Latvia

The global crisis has overwhelmed the world. No one has yet really defined, what it is, as it is just beginning.

At present the inflation in Latvia is just an impartial thing. It has many reasons, and the main of them – the growth of money amount, first, the rapid growth of amount of granted loans. Besides, the growth of money amount is being affected by the money flow of ES funds, the increase of public debt and some other factors. As a result within our economics “the excessive money” has appeared.

Crisis is the phenomena which cannot be predicted by anyone. Calling up the possibly existing crisis, usually the high level of inflation is being mentioned. It is really high and already for a longer time it is the highest in EU.…