—The build-up of financial imbalances in the Baltic
States was analyzed in this article. Summarizing the results of
the research, it can be stated that the financial imbalances in the
Baltic countries loan markets have been build-up simultaneous
during the period of 2006-2010, while in real estate markets
dwelling prices were over the long-term equilibrium level in
2006 Q4 – 2008 Q4. The research results show that the potential
build-up of loan and real estate markets boom in all three Baltic
countries could be predicted in 2002-2003 and the specific
monetary, fiscal, and macro-prudential policy tools could be
introduced in time.
—Baltic states, financial imbalances, loan
market, macro-prudential policy, real estate market.
V. Deltuvaitė is with the Kaunas University of Technology, Economics
and Management Faculty, Finance Department, K. Donelaičio str. 73,
LT-44029 Kaunas, Lithuania (e-mail: firstname.lastname@example.org).
Cite: Vilma Deltuvaitė, "The Identification of the Build-up of Financial Imbalances
from Macro-Prudential Policy Perspective," Journal of Economics, Business and Management vol. 3, no. 6, pp. 605-612, 2015.