Anti-inflationary measures in Sweden

Abstract

The article summarises the measures taken in 1955 by the Swedish authorities as part of a process of revaluation of the instruments of monetary policy and of large recourse to fiscal weapons. The measures included: the raising of the Bank Rate and of the cost of money; credit rationing; and higher taxation bearing more especially on investments. The author believes he is justified in concluding that these new measures were ill-timed (the new restrictive programme was introduced when inflation was already well under way), and that they were unilateral in character (the restrictions affected chiefly private business and were not applied energetically to public expenditure). On the other hand, he considers that for the present it would be premature to give a final appraisal of the dis-inflationary efficacy of the new programme. He does not therefore take account of the results obtained by the very recent enquiry made by the Swedish Joint Stock Companies on the effects of the various anti-inflationary measures on investment plans.

JEL: E31, E51, E52, E58