Governments and central banks have the difficult tasks of managing the socio-economic impact of the coronavirus. The measures have been implemented in different ways in different countries, but it also makes the condition.
over The last few days, the debate being brought, in which the economic impact of the virus, compared to the impact of the efforts to check the disease.
according to Karolina Ekholm, vice riksbankschefer, a former state secretary of finance minister, Magdalena Andersson.
" I think we need to try to mitigate the effects of the two sources. First, it is important to avoid that health care is becoming saturated and people are dying because they are without health care. However, it is also important to avoid that the economy was in vain, goes into a deep recession. It also needs to act in order to avoid them, " says Karin, and She is now a professor of economics at the university of Stockholm.
The economic downturn is already a reality. Right now, it's all about the scene for a nice rebound once the crisis is over.
" the main scenario here is that we get a good drop for now, but we will recover. We don't know when it will happen, but if you are taking a well-balanced response at the right time, so there are definitely good opportunities, "she says, and adds:
" we must aim at is to make sure that there will be a temporary decline, with good prospects of recovery once they got control of the disease.
At the time of the riksbank, Karolina Ekholm, among other things, served as state secretary at the ministry of finance. Photo: Lars Lindqvist < / span>
" It is, of course, a trade-off where we will end up being about right. Sweden has chosen not to be extremely strict when it comes to the directives of the government and of the public authorities, for example. This is in part motivated by trying to avoid a complete shutdown of society, " says Karolina Ekholm.
the Swedish Government and the Swedish authorities have been criticized for having been late with some of the action. Some people think that the country would have been shut down long before the EU ban came in a speech earlier in the week.
if the smittskyddsåtgärder, but I believe that what some people call procrastination might have dampened the economy's fall.
– The measures are, in any case, have been less draconian than in some other countries, but in some other countries, too, the harder the hit. If it's balanced or not, is it difficult for a person without special knowledge on the pandemic to make a comment, but it is in any case to a certain extent, have mitigated the economic impact, " says She.
becoming a great business owner and to start to operate business on a large scale, it's not really optimal, since it does not belong to the state's core business. However, it is necessary as it is necessary.
that the president, Donald Trump is considering whether to allow the government to buy stock in private companies that are affected by the coronakrisen. A similar proposal has also been discussed in Germany, and, according to Karolina Ekholm, cannot be excluded in Sweden.
" The idea is not so very far away. Sweden has done it all before when it comes to the banks, which have been in default. Rather than simply liquidate all of the assets, the state has become the owner and added to the capital. It can certainly conceive of, but that's where we are today.
" it is clear that there are activities for which there is a large socio-economic values to be maintained, but that's the way to end up in default, and the only other option is that the company goes out of business. It is better that the state in which the owner, than the business end, says She.
at the same time, she says that such a move brings with it a number of problems, and is not entirely satisfactory.
" It's better to pre-existing owners try to retain the business. To become a great business owner and to start to operate business on a large scale, it's not really optimal, since it does not belong to the state's core business. However, it is necessary as it is necessary. I exclude nothing, " says Karolina Ekholm.
In She was one of the five vice-riksbankschefer between 2009 and 2014, respectively. Photo: Magnus Hallgren
with her old colleagues at the Riksbank so far in order to prevent a deeper slowdown in the economy, " she argues that, much in line with what was done during the financial crisis of 2008 and 2009.
" That is to say, the provision of liquidity to banks, and try to do it in such a way that the banks are using the funds for on-lending to the company.
" It is added, is that it will also expand the asset purchases that the Riksbank has begun in the recent past, it was not used in the last crisis. It is said that, in addition to purchasing treasury securities and mortgage-backed securities, also intends to buy a pure corporate bond market.
in the case of the Riksbank, and it is pretty hard to cut the rate back to the level it had attained before it began to rise. This is a pretty obvious step to take. Then, all of the measures that have already been announced will also be scaled up if need be.
" the fact That they estimate that it would have an effect that cannot be obtained through the expansion of the scope of the action. However, it is difficult to judge, in my opinion. Personally, I thought it was a little difficult to understand why it raised interest rates in december, there seemed to be a little more tajmat.
see also: Carl-Johan von Seth on The virusoffensiven has only just begun.
see also: anti-crisis Measures from the Swedish central bank – to lend the dollars