Browsing by Author "Tarkka, Juha"

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  • Tarkka, Juha (2015)
    Euro & talous. Blogi
    Näinä päivinä tulee kuluneeksi 150 vuotta J.V. Snellmanin toteuttamasta rahauudistuksesta, jota pidetään Suomen kansallisen rahajärjestelmän lähtölaukauksena. Suomen senaatti päätti rahauudistuksesta marraskuun 8. päivänä 1865 ja se tuli voimaan 13.11.1865.
  • Tarkka, Juha (1989)
    Bank of Finland. Bulletin 63 ; 2 ; February
  • Tarkka, Juha (1997)
    Suomen Pankin keskustelualoitteita 15/1997
    This paper analyses the prerequisites for and the results of unanimous monetary policy decisions in a monetary union consisting of heterogeneous members.The analysis is based on a multicountry version of Rogoff's model of the determination of monetary policy in the presence of supply shocks.It is shown that an international transfer system can be designed which creates consensus both on the average rate of inflation and the common response to asymmetric shocks to the participating economies.We conjecture that this kind of transfer mechanisms, institutionalized or informal, supporting joint decisions tend to evolve in contexts where there is strong aversion of disagreement.Monetary policy is arguably such a context, because frequent disagreement within the decision-making body could be harmful to credibility. The transfer system capable of supporting consensus on monetary policy can be based on activity-related, automatic subsidies for countries which would individually prefer lower inflation rates, and activity-related taxes for countries which would prefer higher inflation in absence of the transfer system. It turns out that the common monetary policy created by unanimous decisions under the supporting transfer mechanism can be characterized as a weighted average of the national "stand-alone" inflation rates, i.e. the rates which would prevail without the monetary union.The weights of the countries are not related to the sizes of the national economies, but rather to the national attitudes towards inflation and transfer income.Countries with a low stand-alone rate of inflation get a large weight in the determination of the common monetary policy, as do the countries which have a relatively low marginal valuation of international transfer income. Keywords: Positive inflation theory, monetary union, monetary policy
  • Tarkka, Juha; Kortelainen, Mika (2001)
    Bank of Finland. Bulletin 75 ; 3
  • Tarkka, Juha (1995)
    Suomen Pankki. E 2
    Sisällysluettelo: 1 Introduction 11 2 Price parameters of the deposit relationship 15 2.1 Dimensions of pricing 15 2.2 The tariff function 18 3 On the historical development of demand deposit pricing 22 3.1 The classical period of deposit pricing 22 3.2 The period of regulated banking 26 3.3 The new competition 30 4 Theories of deposit account pricing 35 4.1 The free competition model 35 4.2 The monopolistic approach 36 4.3 The implicit interest question 39 4.4 The multiproduct approach 43 5 Developing the theory of deposit pricing 45 5.1 Essay I: The risk sharing explanation 46 5.2 Essay II: The tax explanation 48 5.3 Essay III: The price discrimination explanation 49 5.4 Essay IV: Switching costs 51 6 Conclusions 52 References 54 Appendix The deposit account terms offered by a Finnish bank in 1995 59
  • Kuusterä, Antti; Tarkka, Juha (Otava, 2011)
    6 Acknowledgements 9 Prologue 19 International intrigue engulfs Finland 32 Northern European monetary conditions at the time of foundation 41 Early banking in the Kingdom of Sweden 63 Monetary development in Russia 73 First promises of a Bank of Finland 90 A convoluted creation process 111 Slowly moving Finland 118 The Bank of Finland's early years 145 The Bank as a lender, 1813-1840 157 Efforts to replace Swedish currency 165 Sweden's currency reform 172 The rouble goes back on silver 180 Finland prepares for a reform 197 Bank of Finland regulations 1840 205 International development of central banking principles 214 Monetary consequences of the Crimean War 220 Russia fails to return to silver standard 226 Towards monetary reform in Finland 247 Effects of the state fund reform 250 The Bank of Finland as a lender 1841-1867 261 The Bank of the Estates 272 Subordinate to the Diet 278 International moves to gold 286 War in the Balkans prolongs rouble weakness 288 Finland moves to the gold standard 299 Fixing of the rouble to gold 306 Demands for monetary unification 313 The economy picks up 320 Monetary policy under the gold standard 334 Becoming a central bank 353 Structures of governance 370 Operations and staff 394 The World war and monetary system 410 Bank of Finland during the civil war months 438 Bank's finances in the crisis years 446 Ground zero: monetary policy in 1918-19 460 Back to the gold standard 484 Monetary policy on the gold standard 503 Currency crisis, gold standard abandoned 522 The sterling club 535 The Bank of Finland as bank rescuer 544 A more bank-like appearance 551 Fast turnover among board members 565 Banking in the 1920s and 1930s 592 The Parliamentary Supervisory Council 600 Through fortune and adversity to "a magnificent undertaking" 626 Appendix 629 Sources and literature 643 Name index
  • Kuusterä, Antti; Tarkka, Juha (Otava, 2012)
    6 Acknowledgements 9 Turn of an era 18 Bank of Finland in the war years 36 Wartime financial markets 50 Foreign relations and foreign exchange 81 After the war 94 Banknote clipping 102 Finland joins the international monetary system 133 Seeking a monetary policy line 168 The Finnish monetary policy model 189 Politicians and bankers 198 From general strike to devaluation 219 Modernising the currency act 236 Indexing in banking 242 From devaluation to devaluation: monetary policy with a convertible markka 269 The OKO affair: Bank of Finland as the guardian of stability 280 Reform of banking legislation 295 The Institute for Economic Research and the emergence of incomes policy 307 From reconstruction to industrialisation 325 Bank of Finland turns to restructuring policy 346 Quest for stability in an unstable world 370 Inflation takes off 391 “A national emergency” 403 Changing tools of monetary policy
  • Tarkka, Juha (1989)
    Bank of Finland Research Discussion Papers 26/1989
    This paper presents a partial equilibrium model of the determination of deposit rates of interest and bank service charges in a competitive banking industry. It is shown that uncertainty regarding the future use of transactions services can cause a positive. interest rate margin on deposits, and below-cost pricing of transactions services. This contrasts with existing literature which has explained the existence of "implicit interest" as a consequence of interest rate ceilings or non-neutral taxation.
  • Tarkka, Juha; Willman, Alpo; Männistö, Hanna-Leena (1989)
    Bank of Finland Research Discussion Papers 9/1989
    This report describes the determination of private consumption and investment in the BOF4 model. The consumption function of the model is largely based on thepermanent income hypothesis. Relative prices and the level of aggregate consumption determine the shares of the three consumption subgroups included in the aggregate. The non-residential investment equations are derived from the capital owners' intertemporal profit maximization problem in accordance with the neoclassical investment theory. Modelling of residential investment is based on Tobin's approach and that of inventories on the buffer stock-accelerator approach. The properties of the equations are illustrated by means of tables of dynamic elasticities throughout the paper.
  • Schmiedel, Heiko; Malkamäki, Markku; Tarkka, Juha (2002)
    Suomen Pankin keskustelualoitteita 26/2002
    Published in Journal of Banking & Finance, 30, 6, June 2006: 1783-1806
    The paper investigates the existence and extent of economies of scale in depository and settlement systems.Evidence from 16 settlement institutions across different regions for the years 1993-2000 indicates the existence of significant economies of scale.The degree of such economies, however, differs by size of settlement institution and region.While smaller settlement service providers reveal high potential of economies of scale, larger institutions show an increasing trend of cost effectiveness. Clearing and settlement systems in countries in Europe and Asia report substantially larger economies of scale than those of the US system.European cross-border settlement seems to be more cost intensive than that on a domestic level, reflecting chiefly complexities of EU international securities settlement and differences in the scope of international settlement services providers.The evidence also reveals that investments in implementing new systems and upgrades of settlement technology continuously improved cost effectiveness over the sample period. Key words: securities settlement, economies of scale, technological progress JEL classification numbers: D4, G20, F36, L22, O33
  • Tarkka, Juha (2012)
    Suomen Pankki. Blogi
    Maailman keskeiset keskuspankit ovat finanssikriisin aikana laajentaneet toimintansa mittakaavaa ennennäkemättömällä tavalla – niin myös EKP ja sen johtama eurojärjestelmä. Kesän 2008 tilanteesta eli ajasta ennen Lehman Brothersin kaatumista lähtien koko eurojärjestelmän yhteenlaskettujen saatavien arvo on kasvanut noin 140 prosentilla. Samantapainen keskuspankkien taseen kasvu on tapahtunut myös monissa muissa keskuspankeissa.
  • Nieminen, Maritta; Tarkka, Juha (2014)
    Suomen Pankki. BoF online 10/2014
    Tässä artikkelissa tarkastellaan Euroopan keskuspankin ja eurojärjestelmän mandaattia eli sille määrättyjä tavoitteita, sille uskottuja tehtäviä ja sille annettuja toimivaltuuksia. Tavoitteena on selvittää kansainvälisten vertailujen avulla ja tutkimuskirjallisuuteen perustuen, mitä vaikutuksia EKP:n mandaatin muuttamisella voisi olla. Tarkastelu painottuu kysymykseen työllisyys- ja kasvutavoitteiden asemaan rahapolitiikassa.
  • Tarkka, Juha; Willman, Alpo (1988)
    Bank of Finland Research Discussion Papers 3/1988
    Specification of the volume and price equation of Finlands multilateral exports of goods is based on the assumption that Finnish products enjoy only temporary monopoly power. In the context of the whole model this implies that the price of exports of goods as well as short-run marginal costs converge towards a level determined solely by competing foreign prices. The modelling of Finlands bilateral trade is based on the assumption that the value of bilateral exports adjusts to the value of bilateral imports, which, in turn, is determined by Finnish demand for imports from eastern markets. Modelling of the trade in services and imports, excluding imports of oil, fuels and lubricants, is quite conventional: the volume of exports of services and the volumes of imports depend on relevant relative price and activity variables. The modelling of imports of crude oil, fuel and lubricants is based on the assumption that imports of energy are a residual determined by the demand for and the domestic supply of energy.
  • Tarkka, Juha; Willman, Alpo (1990)
    Bank of Finland Research Discussion Papers 1/1990
    This paper describes the modelling of financial markets and the balance of payments in BOF4, a quarterly macroeconomic model developed by the Bank of Finland. The short-term interest rate is determined as a result of the interaction of the demand for money and money supply, as in the conventional IS-LM approach. Alternatively, the model may be solved under the assumption that monetary policy is based on pegging interest rates. In that case, the domestic credit of the Central Bank is the equilibrating variable.
  • Tarkka, Juha; Åkerholm, Johnny (1992)
    Bank of Finland Research Discussion Papers 2/1992
    The paper considers the role common fiscal arrangements might have to play in the operation of a European monetary union. In the first part of the study, we characterize an international fiscal incentive scheme which could reconcile different national macroeconomic preferences, thus supporting an intemational unanimity an monetary policy. The traditionaI argument for fiscal federalism arises from the fact that when countries face asymmetric cyclical fluctuations, pooling of tax revenues may be warranted from the stabilization point of view. Empirical results, presented in the second part of the paper, suggest that the amplitude of asymmetric fluctuations in the GDP is largest in the "fringe" countries of Europe, while the fluctuations in the "core" are more synchronized with pan-European developments.
  • Tarkka, Juha (2017)
    Euro & talous. Blogi
    Heinäkuussa 1917 Suomen eduskunnan ja senaatin suhde Venäjän väliaikaiseen hallitukseen kriisiytyi. Keväällä vallinnut optimismi, joka oli herännyt tsaarivallan kaaduttua ja Venäjän väliaikaisen hallituksen kutsuttua Suomen eduskunnan koolle, oli hiipunut.
  • Tarkka, Juha (2017)
    Euro & talous. Blogi
    Suomen itsenäistymiseen johtanut tapahtumasarja alkoi Venäjän helmikuun vallankumouksesta, jonka tuloksena tsaari Nikolai II luopui kruunusta 15.3.1917 ja valtaan nousi ruhtinas Lvovin johtama väliaikainen hallitus. Vallankumous johti heti suuriin poliittisiin muutoksiin myös Suomessa.
  • Tarkka, Juha (2015)
    Suomen Pankki. Blogi
    Suomen kuluttajahintaindeksin vuosimuutos oli tammikuussa negatiivinen, -0,2 prosenttia. Joulukuusta hinnat alenivat 0,7 %. Kuluttajahintojen alenemisen taustalla vaikutti raakaöljyn hinnan dramaattinen lasku viime vuonna. Viime viikkoina laajasti uutisoitu vähittäiskaupan hintakilpailun kiristyminen voi toisaalta tuntua kuluttajahinnoissa lähikuukausina. Kuluttajan kannalta hintojen aleneminen on hyvä uutinen.
  • Tarkka, Juha (1994)
    Bank of Finland Research Discussion Papers 1/1994
    1n this paper the theory af nonlinear multiproduct pricing is applied to the problem of determining the terms af liquid bank deposits such as cheque accounts. The prafit maximizing interest rate and service charge schedules are characterized within a madel of a manopolybank with a heterogeneous clientele. It is shown that the practice of "implicit interest", meaning below-cost pricing of payment services parallel with large interest margins on deposits, may well be part of the optimal price discrimination strategy. It is also shown that necessary conditians for that kind of cross subsidization to be optimal exist in an inventary theoretic madel of the demand for cheque account services. It is argued that the failure to take (second-degree) price discrimination into account invalidates much of the previous research on demand deposit pricing.
  • Tarkka, Juha; Willman, Alpo (1990)
    Bank of Finland Research Discussion Papers 7/1990
    This paper describes how income distribution and government finances are modelled i n BOF4, a quarterly econometric model of the Bank of Finland. The equations eomprising the ineome distribution and government finanees bloek in the model eonsist of tax equations, behavioural equations for the local government sector and a large number of accounting identities linking produetion and prices to incomes ofhouseholds and other seetors of the economy.