April 21, 2014

Sweden Turns Japanese

Paul Krugman, New York Times

1

Three years ago Sweden was widely regarded as a role model in how to deal with a global crisis. The nation’s exports were hit hard by slumping world trade but snapped back; its well-regulated banks rode out the financial storm; its strong social insurance programs supported consumer demand; and unlike much of Europe, it still had its own currency, giving it much-needed flexibility. By mid-2010 output was surging, and unemployment was falling fast. Sweden, declared The Washington Post, was “the rock star of the recovery.” Then the sadomonetarists moved in.

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TAGGED: Eurozone, Japan, Sweden, Europe

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