Advice to Estonia: borrow money now for your own sake
Eestlased Eestis 17 Jan 2011  EWR
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Juhan Tere, Baltic Course
The old saying goes: "When in Rome, do as the Romans do". When in the euro area, and Estonia is since January 1, 2011, that country does not have to behave as the average euro area country (in fact, given the high debt, exploding deficits, inflexible economies and what not in many other euro area countries, please do not!), but in one aspect Estonia would probably be better off if it did mimic its new peers. Estonia has virtually no national debt. Indeed, the small Baltic state has hardly issued any government bonds at all. Although that is something to be proud of, in a way it is hurting its welfare at the same time.

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