Central Bank Shell Game: What Sweden’s Negative Interest Rates Do To Consumers

Authored by Nick Kamran via LettersFromNorway.com,
Sweden’s welfare state supposedly allows for success while providing a safety net for those unable to keep up with the market. In principle, it is an ideal state, achieving a utopian like state. However, Sweden’s touted economic success has come at the expense of the Krone (SEK) and long-term sustainability. Riksbank, the Swedish Central Bank, like their European contemporaries, have undertaken experimental policy, driving real and nominal interest rates below zero.
Not All Growth is Equal
Since 2014, Swedish deposit rates have been negative. Not only has overall negative real interest rate policy affected housing, but it also drove Swedish consumers deeper into debt. Embarking on the dual mandate policy may have staved off recession it created greater problems for the future.

This post was published at Zero Hedge on Mar 21, 2017.

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