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拉脱维亚的情况分析

正如我们看到的那样，它提供了拉脱维亚的通货膨胀的信息，然后我们可以看到通货膨胀在2003年处于一个稳定的速度，但在2004年开始飙升，如果我们回头看看2003年的历史事件，更确切地说是通过拉脱维亚的工头和刚刚超过三分之二的选民投票，拉脱维亚在2004年5月加入了欧盟。因此我们听到的通货膨胀指数增加是最常见的一个参数，它会导致欧盟对于拉脱维亚的影响。国家变得更加富裕，价格水平也在增加。所有的国家都已经加入欧盟，遵循同一原则，当一个人的收入增加，价格水平也会增加。正如拉脱维亚加入欧盟一样，增加税率是很有必要的，这是总体的价格水平增加的原因。主要的原因之一就是拉脱维亚是一个小国家，拥有开放的经济体系，它是开放的且在运营和外部来看是十分脆弱的。

Analysis Of The Situation Of Latvia Economics Essay

As we can see from the chart that provides the information about the inflation in Latvia, then we can see that inflation was at a stable rate in the year 2003, and began to skyrocket in the year 2004, and if we look at the historical events of the year 2003, more precisely at the referendum of the EU of Latvia, and just over two-thirds of voters voted Yes and Latvia joined the EU on 1 May 2004. Therefore the one of the most common arguments that we hear about the inflation rate increase is the influence of the EU on the Latvia. Countrys that are getting richer, the price level increases as well. All countrys that have joined European Union follow one route, when income for one person increase, the price level increases as well. Also as the Latvia joined the European Union, it was necessary to increase the tax rates, to get accepted by European Directives, this was reason for the general price level increase. One of the main reasons for that is that Latvia is a small country with opened economy system, that is opened and highly vulnerable also from the operations from the outside.

With such high level of inflation the price of goods, tend to increase drastically. If we assume that the item costs 1 Lat in the year 2003, and then with the level of inflation we had during the 5 years, we can see that the price increases from Lat to 1.58 Lat, therefore the price level increase in the general level according to the inflation data, 158% during the 5 years.

The tendency of the price increase resulted in the further wage increase, thus this in later stages increasing the inflation.

To analyse the situation that is in Latvia we should refer to the swan diagram. The economy can be characterised into two main sectors – external sector, and domestic sector. The equilibrium in the each sector is dependent on the two variables. It’s dependant on the real exchange rate, and on the domestic demand. The external Balance curve is sloped downwards, because the high real exchange rate has to be compensated by the low domestic demand, this is required to achieve the necessary to achieve, desired external balance.

Erstwhile in order to achieve internal balance, an increase in the real exchange rates has to be compensated by the higher domestic demand. The real exchange rate measures the relative price of domestic to foreign gods measured in a common currency. So increase in the real exchange rate indicates worsened international competitiveness. Where does Latvia stand in the terms of this diagram? Surely economists generally agree that inflation in Latvia, is exceeding the norms. Latvias account deficit for 2008 is 19,4% from the GDP of Latvia.

Therefore we can say that external balance of Latvia’s deficit is excessive and therefore Latvia is lying above the external balance line. In other words Latvia is located in the Inflation/Deficit zone at t本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。