Spillovers in the Nordic Countries
Electronic Access:
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Summary:
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.
Series:
Working Paper No. 2015/070
Subject:
Asset and liability management Consumption Energy prices Energy pricing Expenditure National accounts Oil prices Prices Real exchange rates Sovereign wealth funds
English
Publication Date:
March 27, 2015
ISBN/ISSN:
9781475554106/1018-5941
Stock No:
WPIEA2015070
Pages:
28
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