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?
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 language | English |
|---|---|
| Title of host publication | Public debt sustainability: International perspectives |
| Editors | Barry W. Poulson, John Merrifield, Steve Hanke |
| Publisher | Lexington Books |
| Chapter | 3 |
| Pages | 69-101 |
| ISBN (Print) | 9781666902563 |
| Publication status | Published - 2021 Nov 15 |
Subject classification (UKÄ)
- Economics