ABSTRACT
Latvia had one of the world's biggest real estate bubbles in the run-up to the crisis, and the most severe collapse in GDP following it. From these tumultuous times it then faded into obscurity under its first period of independence, declared from the Soviet Union in 1918 and lasting until its occupation in 1940 during World War II by the warring Soviets and Germans, of whom Latvia found itself unfortunately positioned dead center between. Composed of key policymakers throughout much of Latvias independence since 1991, their ranks included loyalists recruited and mentored by Viksnins and subsequently placed in position as heads of the central bank, finance ministry and even as prime ministers. Einars Repse, the Finance Minister at the point of construction of Latvias austerity budget, and Ilmars Rimsevics, governor of the Bank of Latvia, stand out as among the most prominent of these policymakers active throughout the whole period of post-independence economic reconstruction.
