European Economy. Economic Papers
The Swedish model for resolving the banking crisis of 1991 - 93. Seven reasons why it was successful. - Lars Jonung [389 KB]
(European Economy. Economic Papers. 360. February 2009.
Brussels. 27pp. Tab. Graph. Ann. Bibliogr. Free.)
KC-AI-09-360-EN-N ISBN: 978-92-79-0970 ISSN: 1725-3187
Summary for non-specialists
This study presents the main features of the Swedish approach for resolving the banking crisis of 1991-93 by condensing them into seven policy lessons.
The main features of the Swedish approach to the banking crisis of 1991-93 concern
- political unity,
- a government blanket guarantee,
- swift policy action,
- an adequate legal and institutional framework,
- full disclosure of information,
- a differentiated resolution policy, and
- the proper design of macroeconomic policies.
JEL classification E44, G14, G21, G28, G32, G33.