Exchange Rate Policy, Inflation and Unemployment: The Experience of the Nordic EFTA Countries
AbstractThis paper reviews the exchange rate policy experience of the Nordic EFTA countries (Finland, Iceland, Norway and Sweden) since the early 1970s. The paper briefly describes the main features of the national economies of the Nordic EFTA countries in an international perspective and their exchange rate arrangements in particular, and then attempts to asses the principal advantages and disadvantages of these and alternative arrangements from the Nordic point of view. The paper also tries to evaluate macroeconomic performance in these countries since the early 1970s in view of the exchange rate and other policies that have been followed, with special emphasis on their devaluation record during 1976-82 and the credibility of current policies. In particular, the Nordic EFTA countries have experienced considerably less unemployment (as intended) at the cost of more inflation and, to a lesser extent, a weaker external position than other industrial countries on average in recent years. The paper concludes with a brief discussion of the implications of EC current developments as 1992 approaches for the viability of existing exchange rate policies in the Nordic EFTA countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 377.
Date of creation: Feb 1990
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- Gylfason, T., 1990. "Exchange Rate Policy, Inflation, And Unemployment: The Experience Of The Nordic Efta Countries," Papers 459, Stockholm - International Economic Studies.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jochem, Sven, 1998. "The social democratic full-employment model in transition: The Scandinavian experiences in the 1980s and 1990s," Working papers of the ZeS 02/1998, University of Bremen, Centre for Social Policy Research (ZeS).
- Cushman, David O. & Sang Sub Lee & Thorgeirsson, Thorsteinn, 1996. "Maximum likelihood estimation of cointegration in exchange rate models for seven inflationary OECD countries," Journal of International Money and Finance, Elsevier, vol. 15(3), pages 337-368, June.
- Alogoskoufis, George & Portes, Richard, 1990.
"International Costs and Benefits from EMU,"
CEPR Discussion Papers
424, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.