[lbo-talk] Krugman comment on the Swedish solution

Michael Pollak mpollak at panix.com
Tue Mar 18 03:24:35 PDT 2008


[From his NYT blog]

http://krugman.blogs.nytimes.com/2008/03/17/forbidden-swedes/

March 17, 2008, 3:43 pm

Forbidden Swedes?

Justin Fox suggests that we learn from the way Sweden dealt with its

financial crisis at the beginning of the 90s. I'm looking into it.

What Justin doesn't mention, however, is that (according to Reinhart

and Rogoff) the resolution of Sweden's financial crisis imposed a

fiscal burden -- that is, required a taxpayer-financed bailout -- equal

to 6 percent of GDP. That would be $850 billion in America today. Just

saying.



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