Sweden GFC

Question 1

spending increasing for fiscal stimulus per % of GDP contraction?

Answer 1

2.76 80s to 0.00 2008-2010

Question 2

how much of corporate taxes were cut in the hope of spurring investment?

Answer 2

• 1.7%

Question 3

what did Sweden do that was the same as the USA

Answer 3

maintaining public sector employment via big transfers from central to municipal governments

Question 4

it is one of the few nations that can genuinely say what?

Answer 4

can say without challenge that macroeconomic policy response to the mid 70s recession response was more expansionary than the great recession

Question 5

what was the level of public debt in 2010?

Answer 5

39.8% of GDP much lower than counter parts

US for example was 95.2% of GDP

Question 6

what was the increase in GDP per capita from 2008 to 2016 ?

Answer 6

18.2%

Question 7

Sweden had learned form what?

Answer 7

the recession of the 90s, it learned to budget, 2011 had about half debt size than the US (in relation to economic size) averaging 1% budget surplus annually.

• whereas the US and UK already had budget deficits of 3% of their economies pre 2007

Question 8

what was welfare like? Despite some tax cuts?

Answer 8

• welfare stayed strong

Question 9

what did the Riksbank do for interest?

Answer 9

it lowered interest and pumped more money in

later had sub zero interest, encouraging banks to spend their money rather than incur cost of keeping it in reserves –> low interest rates also meant cheap mortgages further encouraging people to get spending