Editing Economy of Finland (section)

=== Liberalization ===
Like other Nordic countries, Finland has liberalized its system of economic regulation since late 1980s. The financial and product market regulations were modified. Some state enterprises were privatized and some tax rates were altered.<ref>{{cite web |url=http://www.taloustieto.fi/lukiotext/4text606.html |title=Rahoitusmarkkinoiden liberalisointi |publisher=Taloustieto Oy |access-date=29 April 2013}}</ref>
In 1991, the Finnish economy fell into a severe [[Early 1990s depression in Finland|recession]]. This was caused by a combination of [[Overheating (economics)|economic overheating]] (largely due to a change in the banking laws in 1986 which made credit much more accessible), depressed markets with key trading partners (particularly the Swedish and Soviet markets), as well as in the local markets. Slow growth with other trading partners, and the disappearance of the Soviet [[bilateral trade]] had its effects. The stock market and the Finnish housing market decreased by 50% in value.<ref name="inflation">{{cite web|url=http://www.tcmb.gov.tr/yeni/evds/yayin/kitaplar/enf_kitap/4-Antti_Suvanto.pdf |archive-url=https://web.archive.org/web/20090326210550/http://www.tcmb.gov.tr/yeni/evds/yayin/kitaplar/enf_kitap/4-Antti_Suvanto.pdf |archive-date=26 March 2009 |title=Inflation targeting: Reflection from the Finnish experience |access-date=26 April 2015 }}</ref> The growth in the 1980s was based on debt, and when the defaults began rolling in, GDP declined by 13%. [[Unemployment]] increased from almost full employment to one fifth of the workforce. The crisis was amplified by the trade unions' initial opposition to any reforms. Politicians struggled to cut spending and the public debt doubled to around 60% of GDP.<ref name="inflation"/> Much of the economic growth in the 1980s was based on debt financing. Debt defaults led to a [[savings and loan crisis]]. Over 10 billion euros were used to bail out failing banks, which led to a banking sector consolidation.<ref>{{cite web |url=http://217.71.145.20/TRIPviewer/temp/TUNNISTE_VaVM_15_1996_fi.html |title=Converted |access-date=26 April 2015 |archive-url=https://web.archive.org/web/20120207032252/http://217.71.145.20/TRIPviewer/temp/TUNNISTE_VaVM_15_1996_fi.html |archive-date=7 February 2012  }}</ref>
After devaluations, the depression bottomed out in 1993.