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Ezequiel Cabezon and Christian Henn
Based on a permanent income analysis, Gagnon (2018) has prominently suggested that Norway has saved too much, thereby free-riding on the rest of the world for demand. Our public sector balance sheet analysis comes to the opposite conclusion, chiefly because it also accounts for future aging costs. Unsurprisingly, we find that Norway’s current assets exceed its liabilities by some 340 percent of mainland GDP. But its nonoil fiscal deficits have grown very large (to almost 8 percent of mainland GDP) and aging pressures are only commencing. Therefore, Norway’s intertemporal financial net worth (IFNW) is negative, at about -240 percent of mainland GDP. As IFNW represents an intertemporal budget constraint, this implies that Norway’s savings are likely insufficient to address aging costs without additional fiscal action.
International Monetary Fund. European Dept.
This Selected Issues paper discusses the impact of workforce aging on productivity in the euro area. The euro area population has aged considerably over the past few decades, and the process is expected to accelerate in the years ahead. At the same time, labor productivity growth in the euro area has been sluggish, posing risks to long-term growth prospects. It is estimated that workforce aging could significantly retard total factor productivity (TFP) growth over the medium to long term. Given current demographic projections from the Organisation for Economic Co-operation and Development, the aging of the workforce in the euro area could lower TFP growth by about 0.2 percentage points each year between 2014 and 2035. Appropriate policies can, however, mitigate the adverse effects of aging.
International Monetary Fund
The paper is an account of Finland’s unexpected upcoming deceleration in the economy at the end of 2011 and later. The deleveraging of the financial sector and the debt crisis made the nation fear an inevitable recession. To sustain this vulnerable situation, due attention was given to short-term growth and long-term challenges. Banks were encouraged to build up capitals and toughen bank decrees. Plans were made to multiply labor power and productivity. At the end of the paper, the Board welcomed the commitment of the state in improving and safeguarding the financial sector.
International Monetary Fund

Owing to the high dependence of its exports on countries and commodities, Finland experienced the worst recession in the euro area. Executive Directors encouraged authorities to focus on improving bank cost efficiency, preventing excessive risk taking, and limiting liquidity and funding risks. Directors welcomed the establishment of the Nordic-Baltic Stability Group, and stressed the need to strengthen the effectiveness of cross-border supervision and crisis management arrangements. Directors welcomed structural reforms and also emphasized the need of a strong fiscal consolidation to secure fiscal sustainability.

International Monetary Fund

Abstract

This paper provides an analysis of the Tribunal’s jurisprudence for the period is provided in an introductory chapter “Developments in the Jurisprudence of the International Monetary Fund Administrative Tribunal: 2006.” In deciding on an application, the Tribunal shall apply the internal law of the IMF, including generally recognized principles of international administrative law concerning judicial review of administrative acts. The guidelines provide for performance assessments at prescribed intervals during the fixed term and impose obligations on both the fixed-term appointee and supervisors. The Tribunal emphasized that the provisions governing the mandatory resignation and possible subsequent reemployment of staff who serve as Advisors to Executive Directors indicate that a staff member who so resigns has no assured right to resume employment as a member of the IMF’s staff. In order to assess whether an Applicant has initiated administrative review procedures on a timely basis, the Administrative Tribunal may be required to determine when the Applicant was on notice that he had been adversely affected by an administrative act of the IMF.

International Monetary Fund
This 2007 Article IV Consultation highlights that growth in Finland has outpaced the euro area average. Inflation is among the lowest in the European Union, and the external current account and general government budget are both comfortably in surplus. The labor market has improved markedly since 2005, with rising participation rates and comparatively strong employment growth. The unemployment rate has dipped below the euro area average, and hovers near estimates of the structural unemployment rate.
International Monetary Fund

This 2007 Article IV Consultation highlights that growth in Finland has outpaced the euro area average. Inflation is among the lowest in the European Union, and the external current account and general government budget are both comfortably in surplus. The labor market has improved markedly since 2005, with rising participation rates and comparatively strong employment growth. The unemployment rate has dipped below the euro area average, and hovers near estimates of the structural unemployment rate.

International Monetary Fund
The Selected Issues paper on Finland underlies public finances and structural reform. The structural reforms encompassing labor and product markets as well the pension system would substantially improve the outlook for fiscal sustainability. Reductions in labor and product market inefficiencies is estimated, on the basis of a staff computable general equilibrium model, to raise output and employment significantly while reducing the price level. Additional pension reforms could further increase employment, boost economic growth, and improve public finances, as could improved expenditure efficiency, thereby creating room for further reductions in labor income taxation.
International Monetary Fund

The staff report for the 2004 Article IV Consultation on Finland highlights economic background and policy discussions. Sustained economic growth, among the highest in the industrialized world, has been underpinned by productivity gains led by the high technology electronics sector. The medium-term fiscal prospects are shaped by the strengthening recovery and the planned tax cuts. Reducing taxation of labor has been a key element of the authorities’ efforts to promote employment. The structural unemployment remains high, and Finland faces a rapidly changing global and domestic environment that calls for hard policy choices.

International Monetary Fund

The economic restructuring and expansion after the crisis reflected a combination of private sector initiative, solid macroeconomic management, including the shift from large deficits to significant surpluses of the general government, and structural reforms. High unemployment is one indication that structural rigidities continue to hamper Finland's output potential. In the face of high unemployment and rapid population aging, the discussions focused on supporting medium-term growth while securing long-term fiscal sustainability. Reflecting concerns about slowing growth, front-loaded expenditure increases, and tax cuts were at the center of the fiscal policy debate.