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Now showing items 1-20 of 42
  • Jantunen, Lauri (2019)
    Bank of Finland Bulletin. Blog
    Artificial intelligence (AI) and massive data are quickly becoming an integral part of finance. These advanced technologies are being deployed in all different stages of business ranging from risk management to portfolio optimization. While these technologies have the potential to improve existing processes and create totally new products, services and distribution channels, these innovation may also contain features that can form new type of vulnerabilities in financial markets.
  • Korhonen, Iikka (2021)
    Bank of Finland Bulletin. Blog
    When the Board of the Bank of Finland decided to disband the old Bilateral Trade Department, which had dealt with payments related to the Finnish-Soviet barter trade, and create a new Unit for Eastern European Economies, the main geographical focus of the new unit was supposed to be the Soviet Union. The work of this new unit began on September 1, 1991, but before the year had ended the Soviet Union had ceased to exist. The Unit nimbly changed its main focus to Russia and the three Baltic States.
  • Gulan, Adam (2021)
    Bank of Finland Bulletin. Blog
    What are the economic causes and consequences of large trade disruptions? Are they able to unleash a full-scale economic crisis? In recent years, the news has been full of events such as the US-China trade war, Brexit and even the collapse of tourism services exports in southern Europe following the outbreak of COVID-19. Finland has its own unique and still recent experience from the early 1990s, when the Soviet Union withdrew from the clearing trade agreement in December 1990.
  • Herrala, Risto (2018)
    Bank of Finland Bulletin. Blog
    While the Caucasian and Central Asian (CCA) regions host ethnically and culturally diverse populations, and are difficult to traverse due to the challenging geography, the countries have a long history of political and economic integration. Much of the region was ruled by Timur in the 14th to 16th centuries and, after being separated by Persian invasion in Caucasus and Chinese invasion in Central Asia, the Russian invasion in the 1700’s brought the two again under a shared rule. Subsequently, the CCA became part of the Soviet Union, and the national borders of today were to a large extent drawn during that era as the borders of the Soviet national republics.
  • Kaaresvirta, Juuso (2020)
    Bank of Finland Bulletin. Blog
    Tensions between China and the United States have once more been on the rise. The US has heavily criticised China about its handling of the coronavirus pandemic, cyber security violations, and has tightened the screws on Huawei. Trade has also come back into the discussion after the truce made during the winter, when the countries signed the Phase One trade agreement on 15 January and agreed to reduce some of the additional tariffs.
  • Kerola, Eeva (2019)
    Bank of Finland Bulletin. Blog
    China announced in January that its real economic growth slowed to 6.4 percent year-over-year in the fourth quarter of 2018. For the full year 2018, the economy expanded by 6.6 percent. It was the weakest pace since 1990, but nevertheless managed to hit the official pre-announced real growth target of around 6.5 percent.
  • Kerola, Eeva (2021)
    Bank of Finland Bulletin. Blog
    The real-world nature of China’s official gross domestic product reporting has been dubious for years. Suspicions grew when the realised figures as reported remarkably matched up with the publicly announced GDP growth targets. For years, normal business cycle fluctuations were replaced by perfectly linear GDP growth figures.
  • Alakiuttu, Antti (2021)
    Bank of Finland Bulletin. Blog
    A larger share of household and corporate finance than previously now comes from outside the banking sector. As a result of digitalisation, the number of different companies providing consumer credit and corporate finance services in Finland has increased. This has aroused concerns about increasing indebtedness among households and companies, although the number of these lenders has decreased following the interest rate cap imposed on consumer credit in September 2019.
  • Herrala, Risto (2019)
    Bank of Finland Bulletin. Blog
    Consider the task of lending to countries that are in severe payment difficulties, possibly involving significant danger of default. Sounds like a tough assignment, and one that has been on the agenda of the International Monetary Fund almost from the start of its day-to-day operation in 1947. For the Fund, the key to success is program conditionality, an idea which developed almost as an afterthought during the early years of its operation.
  • Simola, Heli (2021)
    Bank of Finland Bulletin. Blog
    The global economy and global trade flows have been hit hard by the COVID-19 crisis. The trade collapse in the second quarter of 2020 was even more severe than during the trough of the global financial crisis (GFC) in 2009. However, taking into account the substantial fall in the GDP of most countries during the COVID-19 crisis, the relative trade contraction seems milder compared with the GFC. During the GFC, the combined volume of the GDP in OECD countries contracted by about 5%, and the combined volume of imports of goods and services by 17% from peak to trough (Figure 1). The corresponding figures for the COVID-19 crisis were -12% and -20%, respectively. Trade has also recovered rapidly since the trough in the second quarter of 2020. Trade was almost back at pre-crisis level by the end of the year.
  • Heikkinen, Päivi (2018)
    Bank of Finland Bulletin. Blog
    The near field communication (nfc-) technology has been available for quite some time, and we have predicted its triumph already for years. Introducing new technology in two sided markets is tricky. Two sided markets mean that both sides of the market – in this case the consumers who make the payments as well as the merchants who are the payees, must have sufficient preparedness to use new technology before its adoption becomes profitable. In Finland, some retail chains had latent nfc implemented in their payment terminals, but hesitated to start accepting nfc payments as the penetration of nfc-enabled payment cards was still too low. As there were very few nfc-enabled payment terminals, payment card issuing banks didn’t have the incentive for a big bang renewal of plastic, but provided nfc-chip cards to their customers gradually, in accordance with the normal renewals. Hence, the high expectations took 4–5 years to realise. Year 2017 shows, that nfc is really taking off in the Finnish market.
  • Grym, Aleksi (2018)
    Bank of Finland Bulletin. Blog
    Cryptocurrencies refer to virtual mediums of exchange, which are transferred from one holder to another without the use of a centralised ledger. Originally conceived as an alternative to the official monetary system, cryptocurrencies have failed to realise their intended purpose. Instead, they might be viewed as an asset class of sorts, but only as long as there is a functioning market for them. As such, it is more appropriate to speak of crypto-assets, not cryptocurrencies.
  • Rehn, Olli (2019)
    Bank of Finland Bulletin. Blog
    Conducting monetary policy in the current low inflation and low interest rate environment is a case apart, unlike the ‘old normal’. The Bank of Finland organized an international research conference to discuss this dilemma, and two key topics in particular: the challenges of monetary policy and the future of European Monetary Union.
  • Välimäki, Tuomas (2021)
    Bank of Finland Bulletin. Blog
    The symmetry of the guideline for the monetary policy stance has recently attracted considerable attention in central banks’ communications. Both the Fed and the ECB have, in their recent strategy reviews, laid out that their preferences are symmetric about the inflation target of 2%. Indeed, the calibration of the inflation target was a key part of the ECB’s strategy review that was published in July.
  • Hienonen, Mari (2019)
    Bank of Finland Bulletin. Blog
    The Bank of Finland’s revamped annual report was published in April for the first time as a website in three languages. The aim of the revamp is to offer readers a clear picture of the Bank’s current activities and the situation in the economy. This was all done both flexibly and accessibly, while cherishing traditions and taking account of continuity.
  • Hellström, Jenni (2015)
    Bank of Finland Bulletin. Blog
    In exceptional circumstances, Eurosystem central banks can also grant credit to banks outside monetary policy operations.
  • Rehn, Olli (2020)
    Bank of Finland Bulletin. Blog
    The European Commission, on Wednesday, published its proposal for a European recovery fund to help restart the economic engines in a Europe shaken by the coronavirus. Finnish debate seems to be focusing on the risks and liabilities related to the recovery fund, which are, indeed, important issues. However, less attention has been given to the objective of the fund. Rather than a partial assessment, would not a comprehensive assessment be needed as a basis for decision-making?
  • Herrala, Risto (2020)
    Bank of Finland Bulletin. Blog
    COVID-19 spreads in India. Economy activity declines sharply. Fiscal policy under considerable strain. Monetary policy in crisis mode. RBI works to support the banking sector.
  • Herrala, Risto (2019)
    Bank of Finland Bulletin. Blog
    India’s on a roll. Agreed, there are the usual complaints from its detractors about rampant corruption, slow progress in structural reforms, red tape and a lack of fiscal discipline, but it’s hard to argue with India’s macroeconomic performance – a booming economy with modest inflation. More importantly, India’s recipe for growth delivers strong performance year in and year out. GDP growth has averaged over 7% per annum over the past two decades, translating into almost six percent more income for its young, expanding population every year.
  • Hyrske, Anna (2021)
    Bank of Finland Bulletin. Blog
    Climate change will significantly affect the environment and the economy in the coming decades. On account of climate change, companies will have to change and adapt their business models. The change in the economy and markets will also be reflected in financial system stability, and in that way the issue is closely related to the work of central banks. The goal of the Bank of Finland’s climate work is to spread knowledge and debate around sustainable finance and to enhance expertise in this area.