The EU 2020 process has the key headline target of raising the average employment rate in the EU to 75 from the present 69 per cent. In this paper, we first derive a new result for optimal policymaking under uncertainty. It consists of two components : one of a unilateral policy reaction under...

We study the effects of compulsory military service in Finland on the conscripts future labour market behaviour. This is measured in three ways : first, the time it takes to complete civil education and the level of education acquired; second, how the conscripts will find employment; and third,...

We reassess the result of unsustainability of the euro with respect to inflation differentials claimed by Wickens (2007) by specifying an open-economy version of a two-region New Keynesian model for EMU and demonstrate that the result by Wickens does not hold in general. We are able to derive a...

Tässä raportissa käsitellään aluksi kahta Suomen taloutta ja työmarkkinoita kohtaavaa tekijää, jotka ovat peräisin kansainvälisestä taloudesta : globalisaatiokehitystä ja kansainvälistä talouskriisiä. Tutkimme niiden vaikutusta Suomen talouteen käyttäen työmarkkinoiden...

Suomen talous on joutunut jyrkkään taantumaan, joka uhkaa muodostua syväksi lamaksi. Koska tilanteen taustalla ovat kysynnän hiipuminen kansainvälisessä taloudessa ja kotimaassa ja koska epävarmuuden lisääntyessä likviditeettirajoitusten merkitys kasvaa, voidaan taantumaa...

The paper considers economic reforms in the EU using an economic-political model which captures the possible myopia in economic policies, and analyses reforms in taxation, the welfare state, and in the labour and product markets. We show that high taxes and an extensive welfare state are likely...

Russia prices its energy commodities domestically much lower than the prices prevailing in the international market. Using a general equilibrium framework, we analyse reasons for why Russia should or should not use such a price regulation. First, being a major exporter of energy commodities and...

The paper considers growth and fluctuations in the Finnish economy in the post-war period starting from her long-run dual strategy vis-à-vis export markets in Western Europe and Russia. Finland has wanted to utilise the more rapid growth based on deeper integration in the former, but has...