Economic Prosperity Recaptured T h e F i n n i s h P at h f r o m C r i s i s t o R a p i d G r ow t h Seppo Honkapohja, Erkki A. Koskela, Willi Leibfritz, and Roope Uusitalo B o o k Series Economic Prosperity Recaptured CESifo Book Series Hans-Werner Sinn, editor The Political Economy of Education: Implications for Growth and Inequality Mark Gradstein, Moshe Justman, and Volker Meier The Decline of the Welfare State: Demography and Globalization Assaf Razin and Efraim Sadka, in cooperation with Chang Woon Nam The European Central Bank: Credibility, Transparency, and Centralization Jakob de Haan, Sylvester C. W. Eijffinger, and Sandra Waller Alleviating Urban Traffic Congestion Richard Arnott, Tilmann Rave, and Ronnie Scho¨b Boom-Bust Cycles and Financial Liberalization Aaron Tornell and Frank Westermann Social Security and Early Retirement Robert Fenge and Pierre Pestieau Children and Pensions Alessandro Cigno and Martin Werding Currency Boards in Retrospect and Prospect Holger C. Wolf, Atish R. Ghosh, Helge Berger, and Anne-Marie Gulde Economic Prosperity Recaptured: The Finnish Path from Crisis to Rapid Growth Seppo Honkapohja, Erkki A. Koskela, Willi Leibfritz, and Roope Uusitalo Economic Prosperity Recaptured The Finnish Path from Crisis to Rapid Growth Seppo Honkapohja, Erkki A. Koskela, Willi Leibfritz, and Roope Uusitalo The MIT Press Cambridge, Massachusetts London, England ( 2009 Massachusetts Institute of Technology All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher. For information about special quantity discounts, please e-mail
[email protected] .mit.edu This book was set in Palatino on 3B2 by Asco Typesetters, Hong Kong. Printed and bound in the United States of America. Library of Congress Cataloging-in-Publication Data Economic prosperity recaptured : the Finnish path from crisis to rapid growth / Seppo Honkapohja . . . [et al.]. p. cm. — (CESifo book series) Includes bibliographical references and index. ISBN 978-0-262-01269-0 (