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The great financial crisis in Finland and Sweden - The dynamics of boom, bust and recovery, 1985-2000

Author

Listed:
  • Lars Jonung
  • Jaakko Kiander
  • Pentti Vartia

Abstract

This paper explores the anatomy of the boom, deep depression and recovery in the Finnish and Swedish economies in the period 1985-2000. These fifteen years are divided into three phases: (1) financial liberalization and the boom and the overheating of 1985-90, (2) the outbreak and spread of the crisis to all sectors of the economy in 1990-92, and (3) the recovery 1993-2000. Each period is analyzed separately.

Suggested Citation

  • Lars Jonung & Jaakko Kiander & Pentti Vartia, 2008. "The great financial crisis in Finland and Sweden - The dynamics of boom, bust and recovery, 1985-2000," European Economy - Economic Papers 2008 - 2015 350, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecopap:0350
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    File URL: https://ec.europa.eu/economy_finance/publications/pages/publication13551_en.pdf
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    References listed on IDEAS

    as
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    5. Jonung, Lars & Fregert, Klas, 2008. "Inflation Targeting Is a Success, So Far: 100 Years of Evidence from Swedish Wage Contracts," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 2, pages 1-25.
    6. Edquist, Harald, 2005. "The Swedish ICT miracle -- myth or reality?," Information Economics and Policy, Elsevier, vol. 17(3), pages 275-301, July.
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    11. Jonung, Lars & Schuknecht, Ludger & Tujula, Mika, 2005. "The boom-bust cycle in Finland and Sweden 1984-1995 in an international perspective," CFS Working Paper Series 2006/13, Center for Financial Studies (CFS).
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    More about this item

    Keywords

    Financial crisis; financial liberalization; boom; bust; depreciation; Finland; Sweden; Jonung; Kiander; Vartia; The great financial crisis in Finland and Sweden; The dynamics of boom; bust and recovery; 1985-2000;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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