How did Sweden recover so quickly from the Global Financial Crisis of 2008?
Format MLA
Volume of 10 pages (2750 words)
Type of service: Custom writing
Assignment type : Research Paper
Description
How did Sweden recover so quickly from the Global Financial Crisis of 2008?
While most developed nations like the United States, Japan, and Britain were struggling to salvage their economies, Sweden not only repaired its economy but did so in very quick time. The Swedish Central Bank, Riksbank, used monetary policy aggressively in the aftermath of the crisis. Interest rates fell very low which allowed households to consume more because their mortgage payments dropped. The reason why Swedish officials were able to be so aggressive in their policy-making was because Sweden learned from their crisis in the early 1990s, when a collapse in commercial real estate and the Banking sector was heightened because the budget deficit rose to such high levels and the country had trouble borrowing money and the value of its currency (Krona) collapsed. Sweden’s goal of averaging a 1-percent budget surplus over time and keeping that goal intact has left the nation with the flexibility to engage in deficit spending when the economy crumbled.
Use the articles from the Washington Post and The NYTimes and reports from the IMF and the UN
