Seppo Orjasniemi

Loose fiscal policy lacks a proper plan for sustainability

The current forecast is that growth in the Finnish economy in 2020 is expected to be around 1 per cent, and growth in future years will be of the same magnitude. Growth is not slower than in the past for cyclical reasons; rather it seems that the slow growth is a structural phenomenon. Therefore, fiscal […]

Government’s fiscal policy an appropriate response to the business cycle

Despite reduction in government deficit and improvement in employment the sustainability problem remains unchanged. The social and health care reform will not fix this. The deficit continues to decrease, but from a long run perspective fiscal policy should be tighter The government has almost reached its fiscal targets. The debt to GDP ratio has started […]