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Currency Flexibility vs. Monetary Union: A Comparative Study of Sweden and Finland’s Export Performance During the 2008 Financial Crisis

De Silva, Mark LU (2025) EOSK12 20251
Department of Economic History
Abstract
This thesis compares how Sweden and Finland’s contrasting exchange rate regimes shaped their
export sector performance during the 2008 Global Financial Crisis. While both are small, open
Nordic economies, Sweden maintained a floating currency and independent monetary policy,
whereas Finland adopted the euro and ceded monetary control to the European Central Bank.
The study evaluates export revenues, growth rates, trade balances, and sector composition from
2000 to 2020, with emphasis on crisis response.
The findings show that Sweden’s monetary flexibility enabled a rapid response through interest
rate cuts and currency depreciation, supporting a faster export recovery and sustained trade
surplus. Finland, constrained by Eurozone... (More)
This thesis compares how Sweden and Finland’s contrasting exchange rate regimes shaped their
export sector performance during the 2008 Global Financial Crisis. While both are small, open
Nordic economies, Sweden maintained a floating currency and independent monetary policy,
whereas Finland adopted the euro and ceded monetary control to the European Central Bank.
The study evaluates export revenues, growth rates, trade balances, and sector composition from
2000 to 2020, with emphasis on crisis response.
The findings show that Sweden’s monetary flexibility enabled a rapid response through interest
rate cuts and currency depreciation, supporting a faster export recovery and sustained trade
surplus. Finland, constrained by Eurozone rules, faced a deeper and longer export downturn. The
results highlight how monetary autonomy can improve resilience to external shocks in small
open economies. (Less)
Please use this url to cite or link to this publication:
author
De Silva, Mark LU
supervisor
organization
course
EOSK12 20251
year
type
M2 - Bachelor Degree
subject
keywords
Sweden, Finland, exchange rate regime, floating exchange rate, Eurozone membership, monetary policy, Riksbank, European Central Bank (ECB), export performance, small open economy, 2008 Financial Crisis
language
English
id
9211826
date added to LUP
2025-10-27 08:29:45
date last changed
2025-10-27 08:29:45
@misc{9211826,
  abstract     = {{This thesis compares how Sweden and Finland’s contrasting exchange rate regimes shaped their
export sector performance during the 2008 Global Financial Crisis. While both are small, open
Nordic economies, Sweden maintained a floating currency and independent monetary policy,
whereas Finland adopted the euro and ceded monetary control to the European Central Bank.
The study evaluates export revenues, growth rates, trade balances, and sector composition from
2000 to 2020, with emphasis on crisis response.
The findings show that Sweden’s monetary flexibility enabled a rapid response through interest
rate cuts and currency depreciation, supporting a faster export recovery and sustained trade
surplus. Finland, constrained by Eurozone rules, faced a deeper and longer export downturn. The
results highlight how monetary autonomy can improve resilience to external shocks in small
open economies.}},
  author       = {{De Silva, Mark}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Currency Flexibility vs. Monetary Union: A Comparative Study of Sweden and Finland’s Export Performance During the 2008 Financial Crisis}},
  year         = {{2025}},
}