Sweden’s Historic Crisis Plan Exposes Central Bank’s Limits

Sweden’s government is embarking on an historic spending spree as it acknowledges there’s now less scope to look to the central bank to provide crisis support.

“It’s a big responsibility that we have, now that the Riksbank’s possibilities are smaller than they have been,” Finance Minister Magdalena Andersson said in an interview in Stockholm on Thursday. “We are in a deep crisis, at the same time as monetary policy doesn’t have the muscle it normally has.”