Saturday, May 10, 2014

Paul Krugman: Riksbank Officials Lead Sweden Into a Trap

A correspondent recently pointed me to the news from Sweden, which has stopped flirting with deflation and moved right in.

It's amazing: the country, which at first weathered the recent crisis fairly well and faced none of the institutional constraints membership in the euro zone would have imposed, has managed - completely gratuitously - to get itself into a deflationary trap.

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