Impact of the Euro zone Sovereign Debt Crisis: Finnish Perspective

Impact of the Euro zone Sovereign Debt Crisis: Finnish Perspective Global Interdependence Center Roundtable discussion Banque de France, Paris, March 27, 2012 Antti Suvanto Head of Department Bank of Finland 22.3.2012

Antti Suvanto

SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND

Recessions differ

Recessions without financial crisis

Recessions with financial crisis

US GDP 2008Q3=100 Euro area 2008Q3=100

Finland 2008Q3=100

Sources: IMF World Economic Outlook, April 2009 and Bank of Finland.

22.3.2012

Antti Suvanto

SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND

25856

Bond yields

22.3.2012

Antti Suvanto

SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND

Bank lending growth

Finland

Euro area

22.3.2012

Antti Suvanto

SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND

Central bank balance sheets

ECB

BoE Fed

Riksbank

25200

22.3.2012

Antti Suvanto

SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND

Bank of Finland balance sheet

% of GDP Monetary policy related claims

Target 2 claims

Assets

Liabilities

Monetary policy related deposits

25917 22.3.2012

Antti Suvanto

SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND

Target 2-balances DE

FI

PT

FR

GR

IE

ES

IT

Liabilities

Claims

25917 22.3.2012

Antti Suvanto

SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND

Current account

25856 22.3.2012

Antti Suvanto

SUOMEN PANKKI | FINLANDS BANK | BANK OF FINLAND