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

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?