The Effect on the Swedish Real Economy of the Financial Crisis

Pär Österholm

No 110, Working Papers from National Institute of Economic Research

Abstract: This paper investigates the effects of the financial crisis on the Swedish real economy. In order to do this, an index which describes the financial conditions of the Swedish economy is developed. The index indicates that domestic Swedish financial conditions have deteriorated substan-tially during 2008 and are now at the highest level since the crisis of the early 1990’s. A Bayesian VAR model with both US and Swedish variables is used to assess the quantitative effects of the financial crisis on Swedish real GDP growth. Results suggest that the Swedish economy will grow substantially slower in the next couple of years due to the financial crisis.

Keywords: GDP growth; Bayesian VAR (search for similar items in EconPapers)
JEL-codes: E37 E44 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2009-02-28
New Economics Papers: this item is included in nep-cba, nep-eec, nep-fdg, nep-mac and nep-ure
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Related works:
Journal Article: The effect on the Swedish real economy of the financial crisis (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:nierwp:0110

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