It is in this context that monetary management has to also look at imbalances that could be transitional. The challenge before us at the present time is to manage the transition to a higher growth path, in the presence of some structural rigidities, in such a way that actual inflation and inflation expectations are contained and do not become mutually reinforcing.
Second, the story highlights the determination of Latvians to strive for their goals. The crisis in 2008 dealt this country a severe blow. Yet the people here have shown remarkable resolve to overcome their difficulties and meet the criteria for euro entry.