Reform Capacity and Macroeconomic Performance in the Nordic Countries

Abstract

Thirteen papers and eleven comments consider the Nordic model, define the structural reforms and fiscal management practiced in Denmark, Finland, Sweden, and Iceland, and explore how it has shaped the various economic experiences of these countries. Papers discuss macroeconomic perspectives on the Nordic economies--past, present, and future; collective risk sharing--the social safety net and employment; the political economy of Nordic egalitarianism; labor market policies in Denmark--a story of structural reforms and evidence-based policy; what the scope is for monetary policy--experiences from the Nordic countries after the financial crisis; monetary policy and exchange rate stabilization in Norway and Sweden; house prices in Denmark and Sweden; reforming the fiscal framework--the case of Sweden 1973-2013; shaping the fiscal policy framework--lessons from fiscal consolidations in Denmark and Sweden; a crisis not wasted--institutional and structural reforms behind Norway's strong macroeconomic performance; Finland and Sweden in cross-country comparison--what the lessons are; Iceland--how this could happen; and challenges to the Nordic model--the case of Finland. Andersen is Professor in the School of Economics and Management at the University of Aarhus. Bergman is Associate Professor in the Department of Economics at the University of Copenhagen. Jensen is Professor in the Department of Economics at Copenhagen Business School. Index.