The following is a post from the site Euro Intelligence, published just 5 days ago regarding the Swedish solution to the banking crisis. I am providing this version with the author’s permission, who should be credited with much of the Swedish bank resolution solution’s creation. A longer version is linked at the bottom of this post.

Lars Jonung, who wrote this piece, is now a research adviser at the European Commission in Brussels. He was previously professor of economics at the Stockholm School of Economics. He has published many books and articles in English and Swedish and is the co-author of the leading macroeconomic textbook in Swedish.

You should also note that Jonung served as chief economic adviser to the Prime Minister Carl Bildt in 1992-94 when the Swedish solution was implemented. His characterization of events in this piece is very much at odds with what Alan Blinder recently said in a New York Times piece. Given his role in the process, this discrepancy should be noted.