Economic growth in Finland has been slow for a prolonged period, both historically and by international comparison. Finnish exports have suffered a considerable loss of market share since 2009, the most severe year of the recession. Growth has been depressed by sectoral and structural problems. The forest industries and electrical engineering and electronics, in particular, have experienced serious difficulties.
With a view to forecasting, direct inflation targeting employs, as I have pointed out, several information variables. Such variables are, for instance, changes in wage costs, the exchange rate, commodity prices, equity prices and the money supply. As soon as these indicators point towards rising inflation, the central bank needs to take action.