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

Fredrik N G Andersson; Lars Jonung

doi:10.5040/9781978723924.ch3

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

Fredrik N G Andersson, Lars Jonung

Department of Economics

Research output: Chapter in Book/Report/Conference proceeding › Book chapter › Research › peer-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 language	English
Title of host publication	Public debt sustainability: International perspectives
Editors/authors	Barry W. Poulson, John Merrifield, Steve Hanke
Publisher	Lexington Books
Chapter	3
Pages	69-101
ISBN (Print)	9781666902563
DOIs	https://doi.org/10.5040/9781978723924.ch3
Publication status	Published - 2021 Nov 15

Subject classification (UKÄ)

Economics

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10.5040/9781978723924.ch3

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title = "Preparing for the next crisis: Lessons from the successful Swedish fiscal framework",

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?",

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language = "English",

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Preparing for the next crisis: Lessons from the successful Swedish fiscal framework. / Andersson, Fredrik N G ; Jonung, Lars.
Public debt sustainability: International perspectives . ed. / Barry W. Poulson; John Merrifield; Steve Hanke. Lexington Books, 2021. p. 69-101.

Research output: Chapter in Book/Report/Conference proceeding › Book chapter › Research › peer-review

TY - CHAP

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AU - Jonung, Lars

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N2 - 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?

AB - 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?

KW - fiscal policy

KW - fiscal policy framework

KW - Sweden

KW - fiscal crisis

KW - Covid-19 pandemic

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BT - Public debt sustainability: International perspectives

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A2 - Merrifield, John

A2 - Hanke, Steve

PB - Lexington Books

ER -

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

Abstract

Subject classification (UKÄ)

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