On Sweden’s household debt problem

Sweden has been one of the countries to have best weathered the economic crisis. Despite a hiccup in its domestic economy and the extra deflationary impulse from souring loans to the Baltics in 2009, the Swedish economy has been remarkably resilient. Yet, the economy has begun to falter, in large part because of its connectedness to the euro zone. The Swedish central bank, the Riksbank, has cut interest rates to 1% as the economy slows. But it is housing inflation and the related high levels of ...


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