Puhe Kansantaloustieteen päivien kaupunginvastaanotolla 3.2.

Ladies and Gentlemen,

Today the City of Oulu has the honour to host the 33^rd Annual Meeting of the Finnish Economic Association and welcome the guests from abroad and from Finland. And I dare to assume that also the University of Oulu and the faculty of Economics and business administration share the proud feeling.

For the guests, as a presentation of the city of Oulu, a few words:

Oulu is home for about 140000 persons. It has been growing thanks to its attractiveness as place to live – and to a lesser degree – by incorporating some of its neighbours. The future holds for more the same: Oulu is expected to be among the fastest growing region in Finland.

The growth and success of Oulu has had more than a one driver. Taking only a few decades, we were first a city of forestry industry. Thereafter came the technology industry. Now even the technology firms are facing challenges. Perhaps the only real recipe for success is the readiness to change and the willingness to accumulate and use human capital.

Dear listeners, I must say a few words about economics from non-economist’s viewpoint:

The past two or two and a half years must have been interesting for economists and for the study of economics. After the initial shock of the international financial crisis in 2008 there was, I think at least among some, a loss of faith in the science (of economics). Above all, there wasn’t Great Moderation – the end of major crises in advanced economies – nor ready explanation of the reason or consequences of the crisis.

And if the economists themselves were thinking coolly enough and analytically enough, I dare say that at least the journalists and politicians were losing faith.

Today I think both the media and politicians may see the situation more calmly. Perhaps the ultimate explanation is not yet found. However, there are some things that seem to function in a way that were anticipated by economists. For example, the major central banks seem to have avoided the complete financial meltdown of the financial system and the world economy by strong intervention. Or as it is easier to understand: when some central banks did the opposite that they did before and during the Great Depression in the last century, another Great Depression of the 21′st century has so far not materialised.

Today the Finnish Economic Association and the City of Oulu have an honour to have professor John B. Taylor as a guest.  Luckily I do not have to explain what the Taylor –rule is, since all of us, except me, already know it. But even me as a non-economist have heard of it and of its significance and do appreciate Professor Taylor presence. Thank you, and welcome!