Rehn recalled that hand washing now also has an impact on the economy.
Finland Governor of the Bank Olli Rehn says In Yle’s Ykkösaamu, has not ruled out a presidential candidacy. The next presidential election is in 2024.
“Everyone has to think about the most meaningful way in which they can work for the best of Finland in the future. For my part, I have discussed the issue and I do not rule out the candidacy, “he says.
However, he adds that the corona crisis will now be dealt with first and the question can then be returned to.
Yle’s Ykkösaamu focused on the interest rate crisis and the subsequent economic crisis. According to Rehn, it is important that policymakers and folk psychology understand that interest rates are not indefinitely and forever at zero. President Sauli Niinistö earlier this week raised concerns about loose monetary policy. Rehn said he shared the president’s position in the sense that at some point the stimulus will end.
However, he points out that in the short term, during the interest rate crisis and in the coming years, it will remain important for monetary policy to continue on a very strong stimulus path.
“Economic policy has responded to this crisis on a very broad front, and this is one of the lessons of the euro crisis, meaning that both monetary policy and government fiscal policy are strongly stimulative,” Rehn says.
Rehn says that stimulus policies have prevented a high level of unemployment and bankruptcy. According to him, another option would have been for companies to have collapsed and jobs lost to a very different extent than at present.
“It would have been this kind of social Darwinism, the weak collapses under the recession policy. It would by no means be a responsible policy, but a wrong policy. ”
Rehn points out that health determines the economy to the extreme. According to him, what is crucial for the economy and employment is what can be done to control the pandemic with vaccines, distances, the use of masks and hand washing.