A Brief Note On Sweden And Finland And Sweden

Decent Essays

Most developed countries have suffered through at least one financial crisis. The term financial crisis is in itself very broad and applies to a various number of situations in which financial institutions or financial assets rapidly decrease in value. In the late 1980’s and early 1990’s, the Scandinavian countries – along with Finland – all faced rather serious financial crises, but the outcomes differed vastly among the nations as Denmark and Sweden pushed through to fairly satisfactory results, but Norway and Finland suffered greater complications. No nation’s crisis was identical to another’s and perhaps thereof the different outcomes, but what other factors played a role in deciding a nation’s fate. To better compare and analyze, the focus of this paper will be placed on simply two of the nations involved – Sweden and Finland -, two nations bordering each other, with a great many similarities but two very different outcomes from respective crisis and how they handled their respective issues, and what can be used for future reference.
American economist Richard G. Anderson (2009) has previously touched – briefly – on some of the similarities among the Scandinavian nations’ crises, specifically referring to a common two-stage sequence in each of the countries. The two-stage sequence, as Anderson explains, included “rapidly increasing economic growth accompanied by financial liberalization along with the introduction of new financial instruments, followed by sharp

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