Life Inside the Euro Zone - Focus on the Baltic… | tutor2u Economics
Study notes

Life Inside the Euro Zone - Focus on the Baltic States

  • Levels: A Level, IB
  • Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC

All three of the Baltic States - Lithuania, Estonia and Latvia - who joined the EU single market in 2004 are now members of the Euro Zone. How have their economies fared within the monetary union?

Read more about the economics of monetary union here

Being inside the Euro Zone means that all three countries must adopt the monetary policy interest rate set by the European Central Bank. For some nations, this loss of monetary policy autonomy (sovereignty) is not offset by sufficient economic benefits. Nations such as Poland, Hungary and the Czech Republic for example remain outside of the Euro in part because they do not meet the convergence criteria required for participation.

How are these three Baltic States faring measured in terms of some of the key objectives of macroeconomic policy?

Their economic growth rates have out-performed the Euro Zone average

And progress has been made in achieving further convergence of living standards with the Euro Zone average.

Consumer price inflation

Unemployment rate (% of the labour force)

The Baltic States all have significantly lower levels of government (national) debt expressed as a share of GDP

Subscribe to email updates from tutor2u Economics

Join 1000s of fellow Economics teachers and students all getting the tutor2u Economics team's latest resources and support delivered fresh in their inbox every morning.

You can also follow @tutor2uEconomics on Twitter, subscribe to our YouTube channel, or join our popular Facebook Groups.

Teaching Vacancies

Recruitment

Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u

A New Home for tutor2u Resources

We've just flicked the switch on moving all our digital resources to instant digital download - via our new subject stores.

For every subject you can now access each digital resource as soon as it is ordered. This will always be the latest edition of each resource too (and we'll update you automatically if there is an upgraded version to use).

Simply add the required resources to your cart, checkout using the usual options and your resources will be available to access immediately via your mytutor2u account.