1. Latvia’s Adjustment Under a Fixed Exchange Rate Regime Mark Weisbrot Co-Director, Center for Economic and Policy Research

2. Source: IMF World Economic Outlook and Reviews. GDP Losses in Recessions

3. Source: IMF World Economic Outlook and Reviews. Projected GDP Real GDP is not projected to meet its pre-crisis level until 2016. Extending IMF projections further, real GDP will catch up to its 2008-projected trend in 2039.

4. Source: IMF International Financial Statistics. Argentina: GDP

5. Source: IMF International Financial Statistics. Recent Devaluations and GDP Loss Devaluation GDP Decline Date Months until Trough National Currency per US Dollar Size of Devaluation Quarters until Trough Loss in GDP Change in GDP 3 Years after Devaluation BeforeTrough ArgentinaJan-0151.03.6-72.2% 2-4.9%17.2% FinlandSep-92114.45.8-23.9% 4-2.4%6.8% GeorgiaDec-9821.52.3-36.8% 1-1.6%6.5% IcelandOct-08191.2135.3-32.6% 6-10.4%-6.3% IndonesiaJul-97122,446.613,962.5-82.5% 5-13.4%-7.9% IranMar-93267.31,635.7-95.9% 4-1.6%10.6% ItalyAug-92121,102.61,605.1-31.3% 2-1.7%6.0% MalaysiaSep-9742.74.4-37.8% 5-8.5%6.7% MexicoDec-9433.46.7-48.6% 4-8.0%5.9% South KoreaDec-9711,025.61,701.5-39.7% 2-9.1%14.0% SwedenNov-9296.28.1-22.8% 2-0.4%8.9% ThailandJul-97625.853.8-52.1% 5-14.2%-4.7% United KingdomAug-92120.50.7-23.1% 00.0%9.7% Latvia2007Q4240.490.482.1% 8-24.1%-21.3%

6. Note: Unemployment is measured as a percent of the active labor force. Unemployed, involuntarily part-time, and discouraged workers are measured as a percent of the active labor force plus discouraged workers. Source: Latvijas Statistika. Latvia: Unemployment

7. Source: Latvijas Statistika. Latvia: Employment

8. Source: IMF Reviews, 2009 and 2011. Latvia: General Government Gross Debt and Inflation

9. Source: IMF Fiscal Monitor Database and 2012 Latvia Review. Latvia: Primary General Government Balance

10. Source: Eurostat Latvia Official Interest Rates (Lending)

11. Source: IMF Review Trade in Goods and Services

12. Source: Central Bank. Trade in Goods and Services

13. Source: Central Bank. REER (CPI Method, Against Major Trading Partners)

14. Source: IMF International Financial Statistics. Consumer Price Index, Year-over-Year Change

15. Source: IMF International Financial Statistics. Capital and Financial Accounts

16. Source: Eurostat. Primary Gen. Gov’t. Balance – Other Countries