The Quest for Economic Stability: A Study on Swedish Stabilization Policies 1873-2019

• This paper explores the evolution of Swedish stabilisation policies through six policy regimes between 1873 and 2019. We focus on discretionary policy decisions by estimating policy shocks using a SVAR model. Through these shocks, we explore how stabilisation policies have evolved over time and how policymakers responded to key economic events such as financial crises and wars. Our results show three key results (i) policies are often a source of destabilisation rather than stabilisation, (ii) regimes are designed for a specific time and ends when economic circumstances change, and (iii) fixed exchange rates worsen the economic effects of financial crises.

• This paper explores the evolution of Swedish stabilization policies through six policy regimes between 1873 and 2019. We focus on discretionary policy decisions by estimating policy shocks using a SVAR model. Through these shocks, we explore how stabilization policies have evolved over time and how policymakers responded to key economic events such as financial crises and wars. Our results show three key results i) policies are often a source of destabilization rather than stabilization, ii) regimes are designed for a specific time and ends when economic circumstances change, and iii) fixed exchange rates worsen the economic effects of financial crises.

Ämnesord

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

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

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Ekonomisk historia (hsv//swe)

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

Nyckelord

monetary policy

Fiscal Policy

policy shocks

Sweden

stabilization policy

Financial crisis

stabilization policy

monetary policy

fiscal policy

inflation

recession

financial crisis

Sweden

E42

E43

E52

E58

E62

E65

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art (ämneskategori)

ref (ämneskategori)