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The structural crisis of the economy.

Economic Review (Kansallis)

| September 22, 1994 | Vikkula, Kaisa; Vikkula, Matti | COPYRIGHT 1994 Kansallis-Osake-Pankki. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

In the 1990s Finnish economic policy has been able to react, but unfortunately not to foresee. The collapse of trade with the Soviet Union revealed the real weakness of the Finnish economic structure. In the private sector the excess capacity of the home-market industries and services has been nearly dismantled, but contractions in the public sector are still in their early stage. The government deficit sought to be balanced by tightening taxation, although it would have been more important to grapple with the structures of the public sector services and finance. Public sector services are based on values, attitudes and beliefs formed during the period of economic growth. ...

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