Bank Of Finland Research Articles

The central bank of the Grand Duchy of Finland

Abstract Professor Hugo E. Pipping's work on the vicissitudes of the Bank of Finland (the central bank of the country) is one of the weightiest contributions that has yet been made to Finnish economic history. With the completion of volume lIt he has brought the story up to the beginning of World War I.

Central banking and currency problems in Finland, 1811–1877

Abstract Hugo E. Pipping's major work on the early history of the Bank of Finland and its development from being the sole bank in Finland to its assumption of the role of central bank with its own gold reserves is not merely the history of a bank. It describes fully the beginning of the Finnish banking system and analyses the unique monetary conditions of the country. In the process the Bank itself sometimes recedes into the background of the story, but this approach has yielded a rich harvest.

A study of the old Danish aristocracy

Abstract Hugo E. Pipping's major work on the early history of the Bank of Finland and its development from being the sole bank in Finland to its assumption of the role of central bank with its own gold reserves is not merely the history of a bank. It describes fully the beginning of the Finnish banking system and analyses the unique monetary conditions of the country. In the process the Bank itself sometimes recedes into the background of the story, but this approach has yielded a rich harvest.

A Study of Cost and Demand Inflation.

Journal Article A Study of Cost and Demand Inflation Get access A Study of Cost and Demand Inflation. By J. D. Pitchford. (Amsterdam : North-Holland Publishing Company, 1963. Pp. 167. 30s.) J. J. Paunio J. J. Paunio Institute for Economic Research, Bank of Finland, Helsinki Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 75, Issue 298, 1 June 1965, Pages 430–431, https://doi.org/10.2307/2229448 Published: 01 June 1965

Purchasing Power Guarantees for Deferred Payments

A MEASURE INTRODUCED in Finland in May 1955 appears to be one of the first steps taken by a banking system to introduce, in its pure form, a device that has long been advocated by theoretical economists. Most savings banks in Finland introduced at that time a new form of time deposit for their customers. In future, money could be deposited for one year, and at the end of the year the bank would undertake to credit the account with the amount that the cost of living index indicated was necessary to restore the account's original purchasing power.' The account would bear 434 per cent interest, 13/2 per cent below the prevailing rate on deposits without the purchasing power guarantee. Since this step was taken at a time when there was, in other countries, a rising practical interest in the device, it seems useful to re-examine closely the advantages claimed for such an arrangement and to study the practical problems and fears that have made such experiments rare. The theoretical support among economists for a purchasing power guarantee for deferred payments is most impressive. Marshall in 18862 strongly advocated the use of a standard unit of purchasing power in contracts for deferred payments, and reaffirmed this view in 1911.3 Jevons4 even earlier thought so much of the proposal that he suggested that it be made compulsory, after a short transition period, for "every money debt of, say, more than three months' standing [to] be varied according to the tabular standard"5 of purchasing power. Keynes6

International Bank for Reconstruction and Development

Lending OperationsDuring the period from March 24 to June 22, 1955, the International Bank for Reconstruction and Development made nine loans in seven countries. A loan of $12 million in European currencies to the Bank of Finland was announced on March 24, bringing the total of Bank loans in Finland to over $50 million. The new loan was to be used to help finance projects for expansion and modernization of the woodproducts industry and for further development of electric power. Two commercial banks in the United States were participating in the loan, without the Bank's guarantee, to an extent of $2, 288, 000. It was expected that the Bank's loan would finance about one-fifth of the proposed projects, the remainder being financed from Finnish sources. Approximately $8 million of the loan had been allocated to five woodproducts companies and about $4 million to two electric power projects. It was further expected that about three-fourths of the foreign exchange provided by the Bank's loan would be spent in Denmark, France, Germany, Sweden, Switzerland and the United Kingdom and about one-fourth in the United States. The loan was for a term of 15 years at an interest of 4⅝ percent a year, including the Bank's one percent commission; amortization was to begin on April 15, 1958.