The book analyzes the course of the financial crisis of 2008-2020. in Eastern Europe. The crisis was caused by the usual boom-bust cycle caused by credit expansion in the United States and Western Europe, which led to an excessive current account deficit. When global liquidity evaporated, the overheated economies of Eastern Europe faced a sudden halt in financial flows. The most remarkable thing in this story was how these countries got out of the crisis. The worst-hit countries - Lithuania, Latvia and Estonia - refused to devalue their currencies and instead conducted an internal devaluation, cutting government spending, including public sector salaries. They managed to minimize inflation and quickly turn large current-account deficits into large surpluses. The politically fragmented parliaments of Eastern European countries, elected on the basis of a proportional system, made it possible to quickly change the government when the one in power obviously could not cope.