Using a Markov-switching regime change model applied to Finnish money market interest spreads we find that unobserved changes from tightening to loosening monetary policy are important when examining the explanatory power of interest rates on future inflation changes. The unobserved regime...

The paper re-examines the role of the collapse of Soviet/Russian trade in the Finnish depression of the 1990's, using time series analysis based on a theoretical open macro model. It is shown that empirically, the strong credit expansion resulting from the simultaneous liberalization of the...