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The 1980s financial liberalization in the Nordic countries

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  • Honkapohja, Seppo

Abstract

The financial liberalization in the four Nordic countries (Denmark, Finland, Norway, and Sweden) that took place mostly in the 1980s led to a major financial crisis in three of those countries. The crises in Finland, Norway, and Sweden are among the deepest financial crises in advanced market economies since World War II. Denmark experienced some banking problems but managed to avoid a systemic crisis. This paper reviews the process of liberalization and discusses the reasons why Finland, Norway, and Sweden drifted into financial and economic crises.

Suggested Citation

  • Honkapohja, Seppo, 2012. "The 1980s financial liberalization in the Nordic countries," Bank of Finland Research Discussion Papers 36/2012, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:rdp2012_036
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    File URL: https://www.econstor.eu/bitstream/10419/212239/1/bof-rdp2012-036.pdf
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    References listed on IDEAS

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    Cited by:

    1. Honkapohja, Seppo, 2013. "The euro crisis: a view from the North," Bank of Finland Research Discussion Papers 12/2013, Bank of Finland.

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    More about this item

    Keywords

    financial repression; credit rationing; capital account controls; financial deregulation;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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