{"id":5576,"date":"2012-09-25T07:41:28","date_gmt":"2012-09-25T11:41:28","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=5576"},"modified":"2012-09-25T07:41:28","modified_gmt":"2012-09-25T11:41:28","slug":"fiscal-consolidation-in-sweden-a-role-model-vox","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/09\/25\/fiscal-consolidation-in-sweden-a-role-model-vox\/","title":{"rendered":"Fiscal consolidation in Sweden: A role model? &#124; vox"},"content":{"rendered":"<p>By Martin Flod\u00e9n, Associate Professor at Stockholm University<\/p>\n<blockquote><p>Fiscal austerity was effective during the Swedish economic crisis, but that insight is not particularly helpful today. Austerity would have been more complicated both economically and politically if it had not been supported by currency depreciation and strong external demand, and crisis countries today do not benefit from such developments. Attempts to consolidate before growth had resumed failed in Sweden. One possible interpretation of these observations is that prospects to consolidate are bleak until competitiveness has been restored in crisis economies&#8230;&#8230;.<\/p><\/blockquote>\n<p>via <a href=\"http:\/\/www.voxeu.org\/article\/fiscal-consolidation-sweden-role-model#.UGFr2-mN4CA.twitter\">Fiscal consolidation in Sweden: A role model? | vox<\/a>.<\/p>\n<p>Hat tip to <a href=\"https:\/\/twitter.com\/DE_fromMB\">Delusional Economics<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Martin Flod\u00e9n, Associate Professor at Stockholm University Fiscal austerity was effective during the Swedish economic crisis, but that insight is not particularly helpful today. Austerity would have been more complicated both economically and politically if it had not been supported by currency depreciation and strong external demand, and crisis countries today do not benefit &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/09\/25\/fiscal-consolidation-in-sweden-a-role-model-vox\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Fiscal consolidation in Sweden: A role model? &#124; vox&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,33],"tags":[289,916,3311],"class_list":["post-5576","post","type-post","status-publish","format-standard","hentry","category-economy","category-uk-europe-countries-regions","tag-austerity","tag-currency-depreciation","tag-sweden"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fiscal consolidation in Sweden: A role model? &#124; vox - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fiscal consolidation in Sweden: A role model? &#124; vox - the patient investor\" \/>\n<meta property=\"og:description\" content=\"By Martin Flod\u00e9n, Associate Professor at Stockholm University Fiscal austerity was effective during the Swedish economic crisis, but that insight is not particularly helpful today. Austerity would have been more complicated both economically and politically if it had not been supported by currency depreciation and strong external demand, and crisis countries today do not benefit &hellip; Continue reading &quot;Fiscal consolidation in Sweden: A role model? &#124; vox&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/09\/25\/fiscal-consolidation-in-sweden-a-role-model-vox\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2012-09-25T11:41:28+00:00\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/09\\\/25\\\/fiscal-consolidation-in-sweden-a-role-model-vox\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/09\\\/25\\\/fiscal-consolidation-in-sweden-a-role-model-vox\\\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"Fiscal consolidation in Sweden: A role model? &#124; vox\",\"datePublished\":\"2012-09-25T11:41:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/09\\\/25\\\/fiscal-consolidation-in-sweden-a-role-model-vox\\\/\"},\"wordCount\":112,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"austerity\",\"currency depreciation\",\"Sweden\"],\"articleSection\":[\"Economy\",\"UK &amp; Europe\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/09\\\/25\\\/fiscal-consolidation-in-sweden-a-role-model-vox\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/09\\\/25\\\/fiscal-consolidation-in-sweden-a-role-model-vox\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/09\\\/25\\\/fiscal-consolidation-in-sweden-a-role-model-vox\\\/\",\"name\":\"Fiscal consolidation in Sweden: A role model? &#124; vox - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"datePublished\":\"2012-09-25T11:41:28+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/09\\\/25\\\/fiscal-consolidation-in-sweden-a-role-model-vox\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/09\\\/25\\\/fiscal-consolidation-in-sweden-a-role-model-vox\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2012\\\/09\\\/25\\\/fiscal-consolidation-in-sweden-a-role-model-vox\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Fiscal consolidation in Sweden: A role model? &#124; vox\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\\\/2009 and 2020 bear markets well ahead of actual events. 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David Cameron's austerity measures have also not saved the UK from falling back into recession. So why is Wayne Swan in Australia so proud of his balanced budget? And\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5394,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/09\/05\/the-work-of-john-maynard-keynes-shows-us-that-counter-cyclical-fiscal-policy-and-an-easing-of-austerity-may-offer-a-way-out-of-the-eurozone-crisis-europp\/","url_meta":{"origin":5576,"position":1},"title":"The work of John Maynard Keynes shows us that counter-cyclical fiscal policy and an easing of austerity may offer a way out of the Eurozone crisis. &#124; EUROPP","author":"Colin Twiggs","date":"September 5, 2012","format":false,"excerpt":"Simon Wren-Lewis, professor at Oxford University and a Fellow of Merton College, says the ECB failed to undertake quantitative easing at the appropriate time because of mis-diagnosis of the problem: The story told by many is that the Eurozone crisis is a result of fiscal profligacy in some countries, and\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4956,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/07\/26\/u-k-stumbles-fueling-austerity-debate-wsj-com\/","url_meta":{"origin":5576,"position":2},"title":"U.K. Stumbles, Fueling Austerity Debate &#8211; WSJ.com","author":"Colin Twiggs","date":"July 26, 2012","format":false,"excerpt":"More evidence that imposing fiscal austerity while the private sector is deleveraging will aggravate rather than cure the problem. From WSJ.com: The [UK] economy shrank 0.7% between April and June, dragged down by weakness in the construction industry, according to official data released Wednesday. An extra day's holiday in June\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10850,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/09\/09\/richard-koo-revitalizing-the-eurozone-without-fiscal-union-april-2012\/","url_meta":{"origin":5576,"position":3},"title":"Richard Koo: Revitalizing the Eurozone without Fiscal Union, April 2012","author":"ColinTwiggs","date":"September 9, 2014","format":false,"excerpt":"Richard Koo in a 2012 paper identifies 3 challenges facing the eurozone: The current crisis in the eurozone consists essentially of two macroeconomic problems and one capital flow problem. The first macro problem is profligate government spending, as exemplified by Greece. In such cases austerity is required: the government must\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4090,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/16\/europes-economic-suicide-nytimes-com\/","url_meta":{"origin":5576,"position":4},"title":"Europe\u2019s Economic Suicide &#8211; NYTimes.com","author":"Colin Twiggs","date":"April 16, 2012","format":false,"excerpt":"Paul Krugman: If European leaders really wanted to save the euro they would be looking for an alternative course. And the shape of such an alternative is actually fairly clear. The Continent needs more expansionary monetary policies, in the form of a willingness \u2014 an announced willingness \u2014 on the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2587,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/12\/09\/eu-treaty-takes-shape-wsj-com\/","url_meta":{"origin":5576,"position":5},"title":"EU Treaty Takes Shape &#8211; WSJ.com","author":"ColinTwiggs","date":"December 9, 2011","format":false,"excerpt":"[European Union] leaders, who are still deeply divided over key elements of their crisis strategy, decided they would move to form a pact among at least 23 of the members to tighten rules on national fiscal policy. But details of the proposed treaty remained to be settled. 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