If a country’s current account balance exceeds the norm in the medium term, its exchange rate is believed to be undervalued, and otherwise the exchange rate is overvalued. The size of the gap between current account balance and the current account norm indicates the degree of undervaluation or overvaluation.
And then later, the city where we have gathered today, Riga, became one of the most significant members of the Hanseatic League, which controlled trade on the bustling Baltic Sea in the 14th and 15th centuries.