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?

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

fiscal policy

fiscal policy framework

Sweden

fiscal crisis

Covid-19 pandemic

Publikations- och innehållstyp

kap (ämneskategori)

ref (ämneskategori)