A role model for the conduct of fiscal policy? Experiences from Sweden

Martin Flodén

Journal of International Money and Finance, 2013, vol. 34, issue C, 177-197

Abstract: Sweden was hit by a severe macroeconomic crisis in the early 1990s. GDP fell for three consecutive years in 1991–1993, unemployment increased by 9 percentage points, banks had to be nationalized, and public budget deficits exceeded 10 percent of GDP. The recovery was however quick. GDP growth was around four percent in 1994–1995, and budget deficits had been eliminated by 1998. Growth remained high in the subsequent decade, and the government debt ratio was reduced by almost 50 percent of GDP.

Keywords: Macroeconomic crisis; Banking crisis; Fiscal consolidation; Structural reforms; Fiscal rules (search for similar items in EconPapers)
JEL-codes: E02 E32 E62 E65 G01 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:34:y:2013:i:c:p:177-197

DOI: 10.1016/j.jimonfin.2012.11.010

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