Many countries have experienced major economic changes since themid-1980s as a result of the deregulation and liberalization of national financialsystems -- two key aspects of globalization -- with some experiencing boom and bustin rapid succession. The small Northern European country of Finland has been hailedas a success story for achieving renewed economic growth and prosperity after afinancial crisis and deep depression in the early 1990s. Economic ProsperityRecaptured offers a detailed analysis of the rapid swings in Finland's recenteconomic development, from initial overheating in the late 1980s through deep crisisin the early 1990s to recovery and growth since the mid-1990s.Finland's complex roadto recovery offers excellent examples of both unsuccessful and successful policyresponses to changing circumstances. The authors examine the three relativelydistinct periods of Finland's recent experience, analyzing the adequacy of themacroeconomic policy response in each case. They assess the real economic effects offinancial constraints and look for evidence of the "credit channel" of the monetarysystem. Finland's rapid economic growth since the mid-1990s is largely the result ofits structural transformation into a high-tech economy; Nokia is the most famousexample of this information and communication technology success. Elaborating onFinland's ICT revolution, the authors demonstrate that well-designed economicpolicies contributed to Finland's economic turnaround.CESifo Book series