Saturday, October 24, 2009

Migration & Eastern Europe

There is an interesting discussion about the current state of the economies in Eastern Europe on http://audiovideo.economist.com/:



It seems to me that the crisis in the Baltic states and their chosen devaluation model (internal vs. external - i.e. wholesale salary cuts vs. currency devaluation) has intensified exodus of people - as the cuts in salaries and reduction of business opportunities have forced them to believe that it is better elsewhere.

If memory serves me right, I think the number of people who have already left those countries is similar to the number of people who were forcibly deported from the Baltics to the Gulags before and after WWII.

Is there a way to quantify how the chosen devaluation policy affects emigration? Would it be fair to say that the cost of having a pegged currency is increased emigration? Is this worth it - esp. considering example of Poland which devaluated the currency and currently is experiencing milder (relatively speaking) effects of the crisis?

Speaking about emigration, Economist.com/videographics presents a cool videograph of migration of people Worldwide:

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