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Edward Hugh. Inflation Surge In Estonia Raises Questions About 'Soft Landing'
Baltic Economy Watch. October 8, 2007


"What I am suggesting is that there may well be other ways available to address the problem, even if they do involve "unconventional tools" and "out of the box" thinking. One of these unconventional measures would certainly be a flexibilising of the labour market through a significant and substantial opening to international migrant labour. In order to work this opening would have to be large scale, and should not simply be confined to skilled worker categories. At the end of the day, it is a question of which you prefer, to be flayed alive by systematic wage deflation (and all the problems of out migration that this might produce) or a rapid transition to a modern multi-cultural society. There are not many other options to play around with here I think. And time is pressing."