Sweden financial crisis 1990–1994

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The Sweden financial crisis 1990–1994 was a

in Finland and the Savings and loan crisis in the United States. The causes of the crisis were similar to those of the subprime mortgage crisis of 2007–2008. In response, the government took the following actions:[1]

This bailout initially cost about 4% of Sweden's GDP, later lowered to between 0–2% of GDP depending on various assumptions due to the value of stock later sold when the nationalized banks were privatized.

In September 2008, economists Brad DeLong and Paul Krugman proposed the Swedish experiment as a model for what should be done to solve the economic crisis that was affecting the United States at the time.[4] Swedish leaders who played a role in devising the Swedish solution and have spoken about the implications for other countries include Urban Bäckström and Bo Lundgren.

Relation to Japan

Japan, which was struggling to handle the deflationary situation due to the Japanese asset price bubble, since the early 1990s, were considering restructuring their economic policies around Sweden's, during that of the Swedish financial crisis, however, such policies never took place.[5]

References

  1. ^ Dougherty, Carter (2008-09-22). "Stopping a Financial Crisis, the Swedish Way". The New York Times. Retrieved 2012-10-04.
  2. .
  3. ^ "History". Financial Supervisory Authority. Retrieved 2012-10-04.
  4. ^ Krugman, Paul (2008-09-28). "The good, the bad, and the ugly". The New York Times. Retrieved 2012-10-04.
  5. ^ Bertoldi, Moreno (February 2003). "Whither Japan's Economy?". Retrieved 2021-01-19.