The large influx of migrants to Nordic countries in recent years is challenging the
adoptability of Nordic labor market institutions while also adding to potential growth. This
paper examines the trends, economic drivers, and labor market implications of migration to
Nordic countries with a particular focus on economic migration as distinct from the recent
large flows of asylum seekers. Our analysis finds that migration inflows to the Nordics are
influenced by both cyclical and structural factors. Although migration helpfully dampens
overheating pressures during periods of strong demand, and over the longer term will cushion
the decline in labor supply from population aging, in the near-term unemployment can rise,
especially among the young and lower-skilled. The analysis highlights the need to adapt
Nordic labor market institutions in a manner that better facilitates the integration of migrants
into employment. In particular, greater wage flexibility at the firm level and continued strong
active labor market measures will help improve labor market outcomes among immigrants.
Though many aspects of Russia's fiscal policy framework are close to best practice on paper, actual practice in recent years has been moving away from best practice. In particular, the continued focus on the overall rather than the nonoil balance, and the regular use of supplemental budgets to spend windfall oil revenues contribute to procylicality of fiscal policy, risking costly boom-bust cycles. Against this background, this paper suggests several improvements to the framework for fiscal policy.