This paper suggests an analysis of monetary policy reactions in a typical Finnish business cycle during the regime of credit rationing. We start by presenting a macroeconomic model which incorporates the institutional characteristics of repressed financial markets and which can generate cyclical...

In this paper we study the wage curve with Finnish metal industry panel data from the period 1991–95. As an unemployment variable we use the unemployment rate of the regional county. The unemployment rate is split into short- and long-term unemployment. The effect of active labour market...