The popular explanation for the Swedish boom to bust cycle is that the liberalisation of financial markets in the mid 1980s spurred a consumption boom, which had grave consequences when the economy was hit by large macroeconomic shocks in the early 1990s. We take another look at the boom period,...

This paper tries out a variety of approaches to examine three questions. How did the major Swedish tax reform of 1991, which implied lower tax rates and a sharp increase in real after-tax borrowing rates, affect aggregate consumption? How did the tax reform affect household savings composition?...

According to a growing number of critics, the process of financial liberalization in the 1980s is to blame for the volatile macroeconomic development in a number of countries, including the United Kingdom and the Nordic countries. The authors examine how financial deregulation affected one...

We argue that major changes in economic policy have resulted in a more market driven demand for housing investment in Sweden, due to policy changes at the end of the 1980s and the beginning of the 1990s. Tobin's transparent Q theory is the investment theory used. For the last period of the...

Appreciation of prices in the housing market is analysed in this paper with different statistical tests. Using Ljung-Box test statistics for monthly data for a sample that starts in the beginning of 1981 and ends in the mid 1993 the EMH, efficient market hypothesis is rejected for nominal and...