This paper analyzes spillovers to and from the Nordiceconomies within the context of these structural similarities and differences. This analysis is based on a complementary pair of estimated structural macroeconometric models of the world economy, disaggregated into thirty five national economies, documented in Vitek (2012 , 2013 ). Within these frameworks, each economy is represented by interconnected real, external, monetary, fiscal, and financial sectors. Spillovers are transmitted across economies via trade, financial, and commodity price linkages
This paper analyzes the transmission of shocks and policies among and across the Nordic economies and the rest of the world. This spillover analysis is based on a pair of estimated structural macroeconometric models of the world economy, disaggregated into thirty five national economies. We find that the Nordic economies are heavily exposed to external macroeconomic and financial shocks, but have significant scope to mitigate their domestic macroeconomic impacts through coordinated policy responses, given their high degree of regional integration.
B. Experience of NordicEconomies
2. The historical record of Finland, Norway and Sweden provides a cautionary tale . Similarly to the United States, these economies experienced joint asset price and banking busts in the late 1980s. In the aftermath of the crises, the personal saving rate tended to remain elevated for many years ( Figure 1 ). The trough-to-peak increase in saving was cons