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Featured Börse Bündnis 90Die Grünen Geschichte texttospeech Christian Thiel

What business is it that you think should be knocked out?

Lars Oxelheim type that the Riksbank's lågräntepolitik, which generated ”a macroeconomic tailwind”, carries a risk of an excessively low pressures in the Swedi

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What business is it that you think should be knocked out?

Lars Oxelheim type that the Riksbank's lågräntepolitik, which generated ”a macroeconomic tailwind”, carries a risk of an excessively low pressures in the Swedish economy. In addition, he believes that the weak exchange rate – which in some extent can be explained by the monetary policy – only companies, and not the people, for the benefit. Both of these claims are problematic, and I believe that the debate around the effects of the Riksbank's policy must be qualified.

But the ”back side” of this coin is that fewer companies being knocked out; these companies can instead continue to operate their business, engage their employees and deliver a profit to their owners.

I think, therefore, that a relevant issue that Oxelheim and other critics of the Riksbank's policy in front of similar arguments at least should touch on is how the high pressures as is desirable. What business is it that you think should be switched out?

It is in this context worth noting that it is in the day being a debate about how we shall be able to integrate a very large number of new arrivals – of which a very high proportion have low education and/or lack of skills demanded by the business sector – in the Swedish labour market. The answer to that question should stand, and be to all productive companies in Sweden to be switched out.

The low key interest rate entails, inter alia, to households ' mortgage rates are at extremely low levels from a historical perspective. This is not necessarily unproblematic, from a financial stability perspective, but one must also remember that there is a significantly positive aspect, namely that for many households, means that the monthly payment of the interest on housing loans is much lower than what you budgeted for.

The low interest rate, thus opening up for increased consumption of other goods and services, which of course has a value for the households. But this increased consumption stimulates the Swedish economy more generally; among other things, to create the more employed than we would have otherwise seen, which reinforces the positive effect on the Swedish labour market as weak by both stronger exports, weaker imports. So, even if it is true that it is more expensive to go on vacation abroad when the crown is weak, so one should have in mind that, with a weak krona are more swedes who instead of being unemployed has a job to go to, and thus able to afford to go on vacation at all.

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