Lars Jonung
Professor emeritus
Preparing for the next crisis: Lessons from the successful Swedish fiscal framework
Author
Editor
- Barry W. Poulson
- John Merrifield
- Steve Hanke
Summary, in English
Ever since the international financial crisis of 2007/08, Sweden stands out
as a country with a prudent and sustainable national debt policy. Debt rises
during recessions and crises only to fall back during times of growth. A low
debt level before a major crisis allows Sweden to increase its public debt
and support the economy during a crisis without risking a fiscal crisis. The
strength of the Swedish public finances raises three questions: First, what are
the determinants behind this strong performance; second, is the framework
sustainable for the future; and third, are there any lessons for other countries?
as a country with a prudent and sustainable national debt policy. Debt rises
during recessions and crises only to fall back during times of growth. A low
debt level before a major crisis allows Sweden to increase its public debt
and support the economy during a crisis without risking a fiscal crisis. The
strength of the Swedish public finances raises three questions: First, what are
the determinants behind this strong performance; second, is the framework
sustainable for the future; and third, are there any lessons for other countries?
Department/s
- Department of Economics
Publishing year
2021-11-15
Language
English
Pages
69-101
Publication/Series
Public debt sustainability: International perspectives
Document type
Book chapter
Publisher
Lexington Books
Topic
- Economics
Keywords
- fiscal policy
- fiscal policy framework
- Sweden
- fiscal crisis
- Covid-19 pandemic
Status
Published
ISBN/ISSN/Other
- ISBN: 9781666902563