Denmark, Finland, Norway, and Sweden form a tightly integrated region which has strong ties with the euro area as well as some exposure to Russia. Using the IMF’s Global Integrated Monetary and Fiscal model (GIMF), we examine spillovers the region could face, focusing on possible scenarios from the rest of the euro area and Russia, and the fall in global oil prices. We show that the spillovers from these scenarios differ in magnitude and impact, regardless of the high degree of integration among the four Nordic economies. These differences are driven by the fact that Denmark and Finland have no independent monetary policy, and Denmark and Norway are net energy exporters while Finland and Sweden are energy importers. We infer lessons for policy from the outcomes.

This paper analyzes the transmission of shocks and policies among and across the Nordic economies and the rest of the world. This spillover analysis is based on a pair of estimated structural macroeconometric models of the world economy, disaggregated into thirty five national economies. We find that the Nordic economies are heavily exposed to external macroeconomic and financial shocks, but have significant scope to mitigate their domestic macroeconomic impacts through coordinated policy responses, given their high degree of regional integration.

The Nordic Model is the 20th-century Scandinavian recipe for combining stable democracies, individual freedom, economic growth and comprehensive systems for social security. But what happens when Sweden and Finland – two countries topping global indexes for competitiveness, productivity, growth, quality of life, prosperity, and equality – start doubting themselves and their future? Is the Nordic Model at a crossroads? Historically, consensus, continuity, social cohesion, and broad social trust have been hailed as key components for the success and for the self-images of Sweden and Finland. In the contemporary, however, political debates in both countries are increasingly focused on risks, threats, and worry. Social disintegration, political polarization, geopolitical anxieties, and threat of terrorism are often dominant themes. This book focuses on what appears to be a paradox: countries with low income differences, high faith in social institutions, and relatively high cultural homogeneity becoming fixated on the fear of polarization, disintegration, and diminished social trust. Unpacking the presentist discourse of "worry" and a sense of interregnum at the face of geopolitical tensions, digitalization, and globalization, as well as challenges to democracy, the chapters take steps back in time and explore the current conjecture through the eyes of historians and social scientists, addressing key aspects of and challenges to both the contemporary and future Nordic Model. In addition, the functioning and efficacy of the participatory democracy and current protocols of decision-making are debated. This work is essential reading for students and scholars of the welfare state, social reforms, and populism, as well as Nordic and Scandinavian studies. The Open Access version of this book, available at www.taylorfrancis.com, has been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license.

Applying the new economics of organisation and relational theories of the firm to the problem of understanding cross-national variation in the political economy, this volume elaborates a new understanding of the institutional differences that characterise the 'varieties of capitalism' worldwide.

This paper examines 2013 Cluster Consultation—a Nordic Regional IMF staff report. Denmark, Finland, Norway, and Sweden that form the Nordic region share a set of strong economic and social institutions and policies, with emphasis on education, high income equality, high employment, innovative and competitive business environment, etc. The IMF report suggests that strong national financial sector policies and regional cooperation would help mitigate common challenges and shared risks. Cooperative regional policies, such as introducing binding macroprudential minima and clear ex ante burden-sharing arrangements are expected to help limit the costs from any large bank failures.

Zvi Griliches, a world-renowned pioneer in the field of productivity growth, has compiled in a single volume his pathbreaking research on R&D and productivity. Griliches addresses the relationship between research and development (R&D) and productivity, one of the most complex yet vital issues in today's business world. Using econometric techniques, he establishes this connection and measures its magnitude for firm-, industry-, and economy-level data. Griliches began his studies of productivity growth during the 1950s, adding a variable of "knowledge stock" to traditional production function models, and his work has served as the point of departure for much of the research into R&D and productivity. This collection of essays documents both Griliches's distinguished career as well as the history of this line of thought. As inputs into production increasingly taking the form of "intellectual capital" and new technologies that are not as easily measured as traditional labor and capital, the methods Griliches has refined and applied to R&D become crucial to understanding today's economy.