The outbreak of the financial crisis in 2008 has had significant effects on economic activity, unemployment, and public finances for all European countries. However, European economies do not form a homogenous region, and any serious analysis of macroeconomic imbalances in Europe must account for the fact that different economic and political models and circumstances operate across the continent. This book focuses on the Nordic countries (Denmark, Finland, IcelandNorway, and Sweden) which have a relatively good record of undertaking fiscal and structural reforms after their own financial and debt crises in the 1980s and 1990s. The Nordic countries are small and open economies, well-known for their high income levels, high employment rates, organized labourmarkets, a relatively equal distribution of incomes, and large public sectors. From this perspective, the book asks whether there are lessons that might be learned from the Nordic economies. Is there a distinctive Nordic model that could be usefully followed, by other small open economies, in terms of fiscal and monetary policy design, labour market policies and reforms, and financial and housing market regulation? It is inappropriate to define the Nordic model in terms of a common set ofpolicies. Since the key characteristics, including the overarching objectives and supporting institutions, have strong historical foundations, copying and pasting them to other countries is not easily done. Even though the Nordic experiences are not directly transferable, they may add new knowledge aboutthe importance of institutional design, fiscal consolidation, and structural reforms not only for macroeconomic performance but also for how to preserve key objectives such as social balance and equity.

1 Torben M. Andersen, Michael Bergman, and Svend E. Hougaard Jensen: Macroeconomic Perspectives on the Nordic Economies: Past, Present, and Future; 2 Torben M. Andersen: Collective Risk Sharing: The Social Safety Net and Employment; Andreas Bergh: Commentary on Chapter 2: Social Trust and the Efficiency-Equity Trade-Off; 3 Erling Barth and Karl Ove Moene: Missing the Link? On the Political Economy of Nordic Egalitarianism; Niels Blomgren-Hansen: Commentary on Chapter 3; 4 Michael Svarer: Labour Market Policies in Denmark: A Story of Structural Reforms and Evidence Based Policy; Michael Burda: Commentary on Chapter 4; 5 Anders Moller Christensen and Niels Lynggard Hansen: What Scope for Monetary Policy? Experiences from the Nordic Countries after the Financial Crisis; Jesper Rangvid: Commentary on Chapter 5; 6 Hilde C. Bjornland and Junior Maih: Monetary Policy and Exchange Rate Stabilization in Norway and Sweden; Roberto M. Billi: Commentary on Chapter 6; 7 Michael Bergman, Bjorn Tangaa Sillemann, Peter Birch Sorensen: House Prices in Denmark and Sweden; Niels Arne Dam: Commentary on Chapter 7; 8 Lars Jonung: Reforming the Fiscal Framework: The Case of Sweden 1973-2013; Henrik Braconier: Commentary on Chapter 8; 9 Michael Bergman, Michael M. Hutchison , and Svend E. Hougaard Jensen: Shaping the Fiscal Policy Framework: Lessons from Fiscal Consolidations in Denmark and Sweden; Steinar Holden: Commentary on Chapter 9; 10 Erling Steigum and Oystein Thogersen: A Crisis Not Wasted: Institutional and Structural Reforms Behind Norway's Strong Macroeconomic Performance; Hans Tson Soderstrom: Commentary on Chapter 10; 11 Sixten Korkman and Antti Suvanto: Finland and Sweden in Cross-Country Comparison: What are the Lessons?; Fredrik Anderson: Commentary on Chapter 11; 12 Thorvaldur Gylfason: Iceland: How Could This Happen?; Soren Bo Nielsen: Commentary on Chapter 12; 13 Seppo Honkapohja: Challenges to the Nordic Model