A large body of research has established a positive link between immigrants and bilateral trade. However, the temporary movement of people across borders has received less attention. This column uses Swedish data to analyse the impact of temporary cross-border movement on trade. Recently arrived migrants are found to reduce the negative impact of distance on foreign trade, by assisting firms to overcome informal and informational barriers to trade with their origin country. Facilitating movement of people across borders can be a highly useful tool for engaging in and benefitting from specialised and internationalised production networks.
Emilie Anér, Anna Graneli, Magnus Lodefalk, Wednesday, October 14, 2015 - 00:00
Niklas Bengtsson, Per Engström, Tuesday, October 28, 2014 - 00:00
Karl Walentin, Thursday, September 11, 2014 - 00:00
Jesper Roine, Henry Ohlsson, Daniel Waldenström, Friday, August 8, 2014 - 00:00
The extent to which lifetime incomes are determined by inherited wealth is a politically sensitive issue, but long-run evidence on this question is limited. This column presents evidence on Swedish inheritance flows since the early 19th century. Despite a long history of aristocracy, accumulated capital was small relative to income in pre-industrial Sweden. In more recent times, Sweden stands out as a country where the return of capital has not automatically translated into a return of inherited wealth.
Lars E.O. Svensson, Wednesday, September 4, 2013 - 00:00
The Riksbank maintains high policy rates since it fears that a lower rate would increase the household-debt ratio. This column argues that a higher rate in fact leads to a higher debt ratio, not a lower one. The higher rate reduces nominal housing prices and new mortgages, but since the new mortgages are such a small share of total mortgages, the total nominal debt falls very slowly. Yet nominal GDP falls much faster, so the debt-to-GDP ratio rises.
Dirk Schoenmaker, Arjen Siegmann, Wednesday, February 27, 2013 - 00:00
So far, discussions around Europe’s prospective banking union have focused only on the supervision of banks. This column argues that policymakers must also think about the resolution of banks in distress. While national governments confine themselves to the domestic effects of a banking failure, a European Resolution Authority could incorporate domestic and cross-border effects. A cost-benefit analysis of a hypothetical resolution of the top 25 European banks shows that the UK, Spain, Sweden, and the Netherlands would be the main winners.
Martin Flodén, Tuesday, September 25, 2012 - 00:00
As is well known among economists, Sweden had its own financial crisis in the early 1990s and their public finances were quickly consolidated. This column asks whether the Swedish policy measures serve as a role model for how to handle the current crisis?
Luc Laeven, Fabian Valencia, Monday, July 9, 2012 - 00:00
Do advanced economies have an edge in resolving financial crises? This column shows that the record thus far supports the opposite view, with the average crisis lasting about twice as long as in developing and emerging market economies. It argues that macroeconomic stabilisation policies in advanced countries often delay the necessary financial restructuring.
Lars Calmfors, Monday, March 12, 2012 - 00:00
Several Eurozone countries are currently struggling with acute fiscal crises. This column argues that Sweden provides an example that fiscal transparency and a high-quality economic policy debate may be more important for budget discipline than formally binding rules and automatic correction mechanisms as being envisaged in the European fiscal compact.
Randi Hjalmarsson, Helena Holmlund, Matthew Lindquist, Tuesday, November 29, 2011 - 00:00
How should society fight crime? This column argues education policy should be part of the answer. Exploiting a Swedish education reform as a source of exogenous variation in years of education, it suggests that one additional year of schooling decreases the likelihood of conviction by 7.5% for males and by 11% for females.
Henrik Isakson, Saturday, June 25, 2011 - 00:00
In a world economy dominated by fragmented supply chains and trade in tasks, the direct contribution of exports to any national economy is overstated by gross-value measures. Since most measures do not properly account for imported inputs and severely underestimate the share of services in total exports, our view of world trade is distorted. This column says our trade policies risk being distorted too.
Kari EO Alho, Sunday, June 5, 2011 - 00:00
Even in times of crisis, there is room for looking at long-term prospects. This column tries to evaluate the likely effects of Sweden joining the Eurozone.
J James Reade, Ulrich Volz, Tuesday, September 8, 2009 - 00:00
The global financial crisis has revived euro deliberations in Sweden. This column argues that Sweden ought to join the eurozone. It says that Swedish monetary independence is an illusion, as Swedish money market rates are driven by the policies of the ECB. Sweden would gain more by taking a seat at the ECB table than remaining a passive bystander.
Emre Ergungor, Kent Cherny, Thursday, March 19, 2009 - 00:00
The way Sweden handled its 1990s banking crisis has been offered as a useful case study in resolving systemic banking crises. This column discusses the merits of the Swedish experience relative to ideal resolution strategies.
Charles Wyplosz, Sunday, July 20, 2008 - 00:00
Should taxpayers bail out the banking system? One of the world’s leading international macroeconomists contrasts the Larry Summers “don’t-scare-off-the-investors” pro-bailout view with the Willem Buiter “they-ran-into-a wall-with-eyes-wide-open” anti-bailout view. He concludes that either way, taxpayers are always the losers. The best policy makers can do is to be merciless with shareholders and gentle with bank customers.