Scandinavian Working Papers in Economics

SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

No 11: Off Gold and Back again. Finnish and Swedish Monetary Policies 1914-25

Tarmo Haavisto and Lars Jonung ()
Additional contact information
Tarmo Haavisto: Department of Economics, Postal: Lund University, Box 7082, SE-220 07 LUND, SWEDEN
Lars Jonung: Dept. of Economics, Stockholm School of Economics, Postal: P.O. Box 6501, SE-113 83 STOCKHOLM, SWEDEN

Abstract: This paper compares monetary and economic developments in Sweden and Finland during the period 1914-1939. Both countries experienced high monetary growth and high rates of inflation as a result of wartime events. At the return of peace, they were faced with a choice of either deflation or devaluation. Sweden chose deflation and Finland devaluation. This choice had a major impact on the path of the two economies in the 1920s and 1930s. Basically, Finland managed to avoid the depression that affected Sweden due to deflation in 1920-1923.

Keywords: Gold standard; monetary economics; inflation; central banking; exchange rate determination

JEL-codes: E52; E58; N24

38 pages, March 1994

Download statistics

Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-03-27 10:24:36.