This scenario, which is known to us from many countries, is the outcome of two basic causes:  2  BIS Review 63/2001  ·  The unchecked behavior of agents active in these markets and those who finance them.
Contrary to the American system, these countries provide relatively large social assistance of the last resort. Income transfers are primarily oriented to people in working age and active measures to help the unemployed to get jobs are important. Schemes that link access to benefits to regular employment are used. In the Nordic Model unemployment benefits are generous and comprehensive.