Advertisement

Empirica

, Volume 38, Issue 1, pp 71–76 | Cite as

Lessons from the crisis in Finland and Sweden in the 1990s by Jaakko Kiander, Pentti Vartia: Comment

  • Helene Schuberth
Original Paper

The current financial crisis has renewed interest in the Nordic experience of the mid-1990s. In addition to investigating similarities and differences between then and now, the crisis resolution mechanisms adopted by the respective governments are also worthwhile studying, because they bear important lessons for today. The authors focus in particular on the economic policy reactions to the crisis. It is a rich, comprehensive and thought-provoking work, and it is quite different from earlier surveys on the Nordic crisis for three main reasons: It gives new perspectives, it asks new and relevant questions, and it relates economic policy phenomena to political economy aspects of the crisis.

I will focus my remarks on five key themes, (1) financial deregulation and the debt deflation process, (2) policy response, (3) leaning against the wind, (4) the dangers of financial ignorance, and (5) the dangers of trying to learn from past crises.

Financial deregulation and the debt deflation process

Keywords

Monetary Policy Central Bank Housing Price Asset Price Hedge Fund 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Barrel R, Davis PE (2008) The evolution of the financial crisis of 2007–8. Natl Inst Econ Rev 206(1):5–14Google Scholar
  2. Breuer JB (2004) An exegesis on currency and banking crises. J Econ Surveys 18(3):293–320. Available at SSRN: http://ssrn.com/abstract=565087 Google Scholar
  3. Caprio G, Klingebiel G, Laeven L, Noguera G (2005) Appendix: banking crisis database. In: Honohan P, Laeven L (eds) Systemic financial crises: containment and resolution. Cambridge University Press, Cambridge, UK Google Scholar
  4. European Commission (2009) Impact of the current economic and financial crisis on potential output. European Economy, Occasional Papers 49, June 2009Google Scholar
  5. Friedman B (2009) Overmighty finance levies a tithe on growth, financial times, 26th August 2009Google Scholar
  6. Greenspan A (2008) Greenspan concedes error on regulation. New York Times, 23 October 2008Google Scholar
  7. Kaminsky GL, Carmen MR (1999) The twin crises: the causes of banking and balance-of-payments problems. Am Econ Rev, Am Econ Assoc 89(3):473–500Google Scholar
  8. Kannan P (2010) Credit conditions and recoveries from recessions associated with financial crises, IMF Working Paper 10/83Google Scholar
  9. Minsky H (1975) John Maynard Keynes. Columbia University Press, New YorkGoogle Scholar
  10. Minsky H (1982) Can “It” happen again? Essays on instability and finance. M. E. SharpeGoogle Scholar
  11. Schuberth H (2010) Making finance serve society. In: Botsch A, Andrew W (eds) After the crisis: towards a sustainable growth model. ETUIGoogle Scholar
  12. Spaventa L (2009) Economists and economics: what does the crisis tell us? In: Policy Insight N. 38, Center for Policy ResearchGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC. 2011

Authors and Affiliations

  1. 1.Oesterreichische NationalbankViennaAustria

Personalised recommendations