Nordic Regional Report : Selected Issues.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. European Department.

Contributor:

International Monetary Fund.

Series:

IMF Staff Country Reports; Country Report ; No. 2013/275

IMF Staff Country Reports

Language:

English

Subjects (All):

Economics--Europe.

Economics.

Europe, Northern--Economic conditions.

Europe, Northern.

Physical Description:

1 online resource (42 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2013.

Language Note:

English

Summary:

This Selected Issues paper elaborates findings and discussions of 2013 Cluster Consultation Nordic Regional report. The countries have close economic and financial ties and face some common challenges and shared risks, such as large banking sectors and high household debt. The economic performance of the four continental Nordic economies (Denmark, Finland, Norway, and Sweden—Nordic-4) ranks among the advanced economic development circle. It is analyzed that the large Nordic banking systems support relatively high levels of private sector debt. House price developments in the Nordic-4 pose a risk to broader macroeconomic stability in the context of strained household balance sheets.

Contents:

Cover; CONTENTS; I. NORDIC MODEL; A. Key Features; FIGURES; 1.1. Relative Performance of the Nordic Model; B. The Region in the Global Economy; 1.2. General Government Revenues, Expenditures, and Balances; BOX; 1.1. The Nordic-4 and the Global Network; C. A Large Financial Sector; 1.3. Bank Assets; 1.4. Household Financial Debt; 1.5. Nonfinancial Corporate Debt; II. HOUSE PRICES AND HOUSEHOLD DEBT; A. Background; FIGURES; 2.1. Real House Prices in the Nordics; B. House Price Valuation Gaps; 2.2. Real House Prices and Disposable Income; BOXES; 2.1. Supply Side Constraints

2.3. Range of Valuation Gaps of House Prices2.4. Valuation Gap Sensitivity Analysis; C. Assessing Vulnerabilities: Possible Impact of House Price Corrections; 2.5. Household Assets and Liabilities; 2.6. Household Liquid Assets and Liabilities; 2.7. Norway: Share of Households with Debt to Income Ratio Greater than 5; 2.8. Housing Markets in the Nordics; 2.2. Micro-level Evidence on Household Balance Sheets; D. Policy Implications; TABLE; 2.1. Maximum Impact of a Negative Shock to House Prices; III. VULNERABILITIES IN THE NORDIC BANKING SYSTEM; A. Reliance on Wholesale Funding; FIGURES

3.1. Loan to Deposit Ratios: Nordic-4 Banks vs. Rest of the World3.2. Top 20 Loan to Deposit Ratios; 3.3. Largest Covered Bond Markets; 3.4. Currency Composition of Outstanding Covered Bonds; 3.5. Share of Domestic Covered Bond Markets; B. Geographical Exposure; 3.6. Assets of Publicly Listed Nordic-4 Banks; 3.7. Ratio of Bank Assets to Nordic-4 GDP; C. Determining Fiscal Costs Using Bank Balance Sheets; 3.8. Fiscal Costs to be Estimated by Seniority of Bank Liability; 3.9. Potential Fiscal Costs of Bailing Out 6 Largest Banks; D. Policy Implications

3.10. Burden Sharing Costs from Failure of Big 6 BanksTABLES; 3.1. Big 6 Nordic-4 Banks; 3.2. Synthetic Bank Characteristics, by Geography; 3.3. Assumptions and Calibration; 3.4. Timeline of Events Under Alternative Scenarios; 3.5. Synthetic Bank Failure Experiment Results; 3.6. Estimated Fiscal Costs from the Failure of the Big 6 Banks; PANELS; 3.1. Exposure of Six Largest Banks by Geography, 2012; 3.2. Bank-to-Bank and Government-Bank Interlinkages; IV. SHOCKS AND PROPAGATION: ASSESSING NORDIC RESILIENCE; A. Background; FIGURES; 4.1. Nordic-4 GDP Growth; B. Financial Market Contagion

4.2. Estimated Variance Decompositions for Bond Market Excess ReturnsC. Propagation; 4.3. Historical Decomposition of Nordic-4 Growth; 4.4. Decomposing the Inward Outward Spillover Coefficients from a Financial Shock; D. Policy Coordination Experiments; 4.5. Nordic-4 Output Response to an External Growth Shock under Different Fiscal Reactions; 4.6. Expenditure Multipliers; 4.7. Revenue Multipliers; PANEL; 4.1. Estimated Inward Outward Spillover Coefficients

Notes:

Description based upon print version of record.

Description based on online resource; title from PDF title page (ebrary, viewed November 7, 2013).

ISBN:

9781475566307

1475566301

9781475597066

1475597061

9781475573602

147557360X