Sunday, March 29, 2009

Why is Slovakia not financially bereft?

Simple.

Slovak's borrowed more prudently. Slovak banks lended more prudently.

Was it due to regulation?

No. Slovakia has a fairly deregulated economy, with flat income and company tax.

So says Slovak university students in Bratislava, who largely support the free market and are worried that the rural majority will want to go back to centrally planned socialism. This is from the BBC!

Its main challenge is the collapse in car exports, since it had a booming car assembly industry thanks to lower wages and hard working employees. So it is far from immune, and has seen economic growth plummet - but its financial sector is sound. No talk of bank bailouts at all.

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