VATT-JULKAISUJA 27:6 VATT PUBLICATIONS 1990s Economic Crisis The Research Programme on the Economic Crisis of the 1990s in Finland: Down from the heavens, Up from the ashes The Finnish economic crisis of the 1990s in the light of economic and social research Edited by Jorma Kalela Jaakko Kiander Ullamaija Kivikuru Heikki A. Loikkanen Jussi Simpura VALTION TALOUDELLINEN TUTKIMUSKESKUS Government Institute for Economic Research Helsinki 2001 ISBN 951-561-381-7 ISSN 0788-4990 Valtion taloudellinen tutkimuskeskus Government Institute for Economic Research Hämeentie 3, FIN-00530 Helsinki, Finland Email:
[email protected] Cover: Markku Böök Gummerus Kirjapaino Oy Helsinki, October 2001 Contents Preface 1 1. Introduction 3 I Economic and social policies and the crisis 23 2. Finnish Economic Crises in the 20th Century 25 Sakari Heikkinen and Antti Kuusterä 3. The Economic Crisis of the 1990s in Finland 52 Seppo Honkapohja and Erkki Koskela 4. Did the Crisis Change the Welfare State in Finland? 102 Heikki Lehtonen, Simo Aho, Jarmo Peltola and Mika Renvall 5. The Survival of the Finnish Health Care and Social Service System During the Economic Depression of the 1990s 130 Jussi Simpura, Peter Blomster, Matti Heikkilä, Unto Häkkinen, Mikko Kautto, Ilmo Keskimäki, Juhani Lehto, Merja Rastas, Pekka Rissanen and Hannu Valtonen 6. Politics displaced, politics replaced, Elites’ and citizens’ talk on the economic crisis 168 Minna Aslama, Anu Kantola, Ullamaija Kivikuru and Sanna Valtonen 7. Bridging the Gap: Financing of Social Policy in Finland, 1990 - 1998 189 Juho Saari II Labour Market 215 8. Employment and output growth in the 1990s 217 Jaakko Pehkonen and Aki Kangasharju 9.