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Swedes Are Getting Much Poorer - Aptrgangr - 2018 May 05 22:54

Swedes Are Getting Much Poorer

By Amanda Billner and Rafaela Lindeberg
4. Mai 2018, 06:00 MESZ Updated on 4. Mai 2018, 15:13 MESZ

From economists to small business owners, Swedes are worried that their central bank’s policies are undermining their currency.

The krona has plunged more than 10 percent against the euro since the middle of last year, making imports considerably more expensive in an economy in which small businesses tend to rely more on buying goods from abroad than exporting. The currency’s slide follows the central bank’s decision to delay any exit from negative interest rates as policy makers argue they need more signs inflation will stick to a 2 percent target.

But as the policy leaves Swedes poorer, more people are speaking out.

The central bank is “creating new risks,” said Anders Eklof, chief currency strategist at Swedbank AB in Stockholm. “Current policy generates inflation that withdraws purchasing power and generates soaring import prices during a short period, at the same time as the economy folds.” (...)