It is now common in the left-leaning blogosphere to cite Estonia, its rapidly collapsing economy, and its earlier free market policies. Sometimes the name of Dan Mitchell pops up as well.
I would add a cautionary note. Recall for instance that Chile and South Korea and New Zealand also had collapsing economies, for a while (the early 80s for Chile and late 80s for NZ) but they rebounded because they were built on relatively sound economic policies. The point can be made that they, like the Estonians, indulged in too much speculative excess but most Estonian decisions have been good ones.
Which Eastern European economy has suffered least from the financial crisis? By most accounts it is Bulgaria. Should we envy their economic policies? Should you prefer the Bulgarian Way to the Estonian Way?
Which country has a future you would bet upon?