Archive

In just over two months, the Russia’s war has caused severe economic dislocation in many areas. We assess possible economic impacts of the Ukraine invasion on Russia and the euro area.

Russia’s invasion of Ukraine has cast a new veil of gloom over the outlook for Finland’s economy. In the two scenarios, the war in Ukraine will increase inflation and slow Finland’s GDP growth in the current year between 0.5% and 2%. The economic impact could be prolonged.

The IMF’s new comprehensive Climate Strategy is a clear signal that the IMF intends to meet the challenge of climate change. The new Climate Strategy emphasizes the significant impacts that climate risks, climate policy actions as well as adaptation and transition needs will have on macroeconomic stability and envisions integrating climate change into most surveillance and capacity development activities.

The shock of the COVID-19 pandemic and the associated deterioration in the economic outlook has exacerbated solvency concerns and increased the risks of debt restructurings in low-income countries (LICs).

The Finnish economy strengthened faster than expected in the course of spring and summer 2021.

Cash must be available and it must be possible to use cash for as long as people need and want it.

The recovery of the Finnish economy from the COVID-19 crisis has been boosted by stronger-than-expected developments in the second half of 2020.

Due to climate change, extreme weather events will become more frequent, resulting in material damage to buildings and other infrastructure. In Finland, for example, this will probably increase the risk of coastal floods.

According to the Bank of Finland’s assessment, Finnish GDP will contract by 4.7% in 2020. Even though the recession appears to be shallower than feared in the spring, it is still deep, and recovery will be slow.

The need for sustainable finance has grown because of the urgency to mitigate climate change.

The coronavirus pandemic will drive the Finnish economy into recession this year.

Well-functioning trading venues for securities transactions are a necessary component of efficient financial markets.

Educational attainment among the Finnish working-age population is still high by international standards.

An extensive materialisation of risks on the Swedish housing market could also have notable effects in the other Nordic countries.

Low risk premia and high valuations have increased global securities markets’ exposure to price corrections and abrupt shifts in risk premia.

There are no immediate threats to the stability of the Finnish financial system. The relocation of Nordea’s corporate headquarters will, however, increase the banking sector’s exposure to structural vulnerabilities.

How should we measure cost-competitiveness in Finland? We present here the measures of cost-competitiveness in use at the Bank of Finland.

Major central banks have cut interest rates close to zero and introduced non-standard policy measures. What are the theoretical foundations of these policies and what do we know about their effects on financial asset prices?

For China the entry of the renminbi into the SDR basket will be an indication of its stronger role in the global economy.