ECB warns of risks involved in maintaining currency pegs

Dec 17, 2009
From wire reports

TALLINN - The Baltic states risk being pulled into another debt-fueled economic crisis if their governments fail to adhere to sufficiently strict measures to support their euro pegs, says the European Central Bank, reports Bloomberg. Latvia, Lithuania and Estonia are bogged down in a deep economic slump because the tight euro pegs led to easy credit, driving speculative asset bubbles. The ECB report considers that the Baltic states tied their currencies firmly to the euro too early in the ...

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