This paper explores international bond spillovers using daily and intra-day data on yields on inflation-indexed bonds and associated inflation expectations for the United States, Australia, Canada, France, Sweden, Japan, and the United Kingdom. The analysis starts in 2002, by which point U.S....

This paper derives a set of leading indicators of inflation for Sweden. It also discusses methodological and policy issues pertaining to the estimation of these indicators. The main findings are: (1) narrow money is the most powerful leading inflation indicator; (2) broad money and inflation...

The paper investigates the relationship between labor taxation and unemployment in Sweden by estimating a labor market model that includes a wage-setting locus and labor demand and supply relationships. The study simulates the effect of a 1 percentage point increase in the payroll tax and in...

Sweden represents an archetypal welfare state economy, with extensive government safety nets. Some scholars have attributed a decline in its per capita income ranking since 1970 to ""eurosclerosis"" or sluggish growth caused by distortionary policies. This paper argues rather, that the permanent...

In Sweden, the authorities have indicated that their medium-term fiscal strategy is based on restraining expenditures through nominal ceilings and maintaining a fiscal surplus target of 2 percent of gross domestic product (GDP), measured as an average over the cycle. The mission has praised the...

Sweden's economy in the early 1990s has been characterized by a deep recession, high unemployment, a ballooning public sector budgete deficit, and a decline in the value of the currency- developments that have raised questions about the country's capacity to sustain its comprehensive welfare...

This Selected Issues paper on Sweden analyzes possible adjustments to the fiscal framework that the authorities may wish to consider. The paper starts with a brief description of Sweden’s fiscal framework, followed by an assessment of the framework’s strengths and weaknesses. The scope for...

This 2002 Article IV Consultation highlights that a cyclical slowdown in domestic demand coupled with global economic weakness led to slower growth of Sweden in 2001. Private consumption stagnated despite rising disposable income, owing to adverse confidence and wealth effects from the continued...

This Selected Issues paper on Sweden reviews economic developments in Sweden during 1994–98. In 1994, the general government expenditure-to-GDP ratio stood at 70 percent, up from below 60 percent of GDP in the late 1990s; meanwhile, the revenue ratio was just under 60 percent of GDP, down from...

The paper investigates the determinants of wages in the tradables and service sectors in Norway and Sweden. Tradables wages are determined by their own productivity growth whereas service sector wages are influenced by wage growth in the tradables sector. The traditional strong sensitivity of...