Preparing for the next crisis: Lessons from the successful Swedish fiscal framework

Research output: Chapter in Book/Report/Conference proceedingBook chapterpeer-review

Abstract

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?
Original languageEnglish
Title of host publicationPublic debt sustainability: International perspectives
EditorsBarry W. Poulson, John Merrifield, Steve Hanke
PublisherLexington Books
Chapter3
Pages69-101
ISBN (Print)9781666902563
Publication statusPublished - 2021 Nov 15

Subject classification (UKÄ)

  • Economics

Cite this