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Financial Crisis and Crisis Management in Sweden. Lessons for Today

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  • Jonung, Lars

    (Asian Development Bank Institute)

Abstract

This paper gives an account of the Swedish financial crisis covering the period 1985–2000, dealing with financial deregulation and the boom in the late 1980s, the bust and the financial crisis in the early 1990s, the recovery from the crisis and the bank resolution policy adopted during the crisis. The paper focuses on three issues: the causes and consequences of the financial crisis, the policy response concerning bank resolution, and the applicability of the Swedish model of bank crisis management for countries currently facing financial problems.

Suggested Citation

  • Jonung, Lars, 2009. "Financial Crisis and Crisis Management in Sweden. Lessons for Today," ADBI Working Papers 165, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0165
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    File URL: http://www.adbi.org/working-paper/2009/11/20/3368.financial.crisis.mngt.sweden/
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    References listed on IDEAS

    as
    1. Calomiris, Charles W & Klingebiel, Daniela & Laeven, Luc, 2004. "A taxonomy of financial crisis resolution mechanisms : cross-country experience," Policy Research Working Paper Series 3379, The World Bank.
    2. Lars Jonoug & Jaakko Kiander & Pentti Vartia (ed.), 2009. "The Great Financial Crisis in Finland and Sweden," Books, Edward Elgar Publishing, number 13404.
    3. Mr. Fabian Valencia & Mr. Luc Laeven, 2008. "Systemic Banking Crises: A New Database," IMF Working Papers 2008/224, International Monetary Fund.
    4. Henrekson, Magnus & Jonung, Lars & Stymne, Joakim, 1994. "Economic Growth and the Swedish Model," CEPR Discussion Papers 901, C.E.P.R. Discussion Papers.
    5. Jonung, Lars & Fregert, Klas, 2008. "Inflation Targeting Is a Success, So Far: 100 Years of Evidence from Swedish Wage Contracts," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 2, pages 1-25.
    6. Englund, Peter, 1999. "The Swedish Banking Crisis: Roots and Consequences," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 15(3), pages 80-97, Autumn.
    7. Mr. Burkhard Drees & Ceyla Pazarbasioglu, 1998. "The Nordic Banking Crisis: Pitfalls in Financial Liberalization: Pitfalls in Financial Liberalization," IMF Occasional Papers 1998/007, International Monetary Fund.
    8. Hongyi Chen & Lars Jonung & Olaf Unteroberdoerster, 2014. "Lessons for China from Financial Liberalization in Scandinavia," Asian Economic Papers, MIT Press, vol. 13(1), pages 1-44, Winter.
    9. Lars Jonung, 2008. "Lessons from Financial Liberalisation in Scandinavia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 50(4), pages 564-598, December.
    10. Jennergren, L. Peter, 2001. "The Swedish Finance Company Crisis -- Could It Have Been Anticipated?," SSE/EFI Working Paper Series in Business Administration 2001:6, Stockholm School of Economics, revised 22 Apr 2002.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Baxa, Jaromír & Horváth, Roman & Vašíček, Bořek, 2013. "Time-varying monetary-policy rules and financial stress: Does financial instability matter for monetary policy?," Journal of Financial Stability, Elsevier, vol. 9(1), pages 117-138.
    2. Giancarlo Corsetti & Barry Eichengreen & Galina Hale & Eric Tallman, 2020. "The Euro Crisis in the Mirror of the EMS: How Tying Odysseus to the Mast Avoided the Sirens but Led Him to Charybdis," Open Economies Review, Springer, vol. 31(2), pages 219-236, April.
    3. Leszek Lesniewski, 2015. "Gospodarki Danii, Finlandii i Szwecji a globalny kryzys finansowy / The Global Financial Crisis in Denmark, Finland and Sweden," International Economics, University of Lodz, Faculty of Economics and Sociology, issue 9, pages 5-22, March.
    4. Corsetti, Giancarlo & Eichengreen, Barry & Hale, Galina & Tallmann, Eric, 2019. "The Euro Crisis in the Mirror of the EMS," Santa Cruz Department of Economics, Working Paper Series qt8rk7w2nk, Department of Economics, UC Santa Cruz.

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    More about this item

    Keywords

    financial crisis; crisis management; bank resolution; solvency crisis; banking crisis;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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