Krugman Jibes Linger as Biggest Party Seeks Riksbank Review

Two months after Nobel laureate Paul Krugman criticized Sweden’s central bank for exposing the largest Nordic economy to a deflationary spiral, the country’s biggest party is seeking a monetary policy review.

The Social Democrats, who polls show will head the government after elections in September, are open to letting an independent body review monetary policy after five consecutive months of declining consumer prices and as unemployment exceeds rates elsewhere in Scandinavia.