Analysis: "It is now blowing economically"

What is unique this time when we enter into a slowdown in the economy, and the outlook for unemployment is deteriorating, is that we meet the slowdown with a record low interest rate from the Riksbank. The message from the finance minister is clear: a low interest rate is not the only thing that should sustain the Swedish economy.

Her government does not intend to save herself through the crisis - and this spring, municipalities and regions should count on help with their increased costs for care, school and care.

Previously, managers at both the International Monetary Fund and the European Central Bank have signaled this particular shift. When the world now faces a slowdown in a low inflation and low interest rate environment, monetary policy is not enough. Christine Lagarde said before taking office as head of the European Central Bank, "central banks are not the only game in town". Through that statement, she urged the European governments to put on their trousers. The Riksbank, for its part, is assisted by municipalities and regions in reaching their inflation targets.

The dramatic unemployment figures presented last fall before the budget turned out to be the fault of the Statistics Sweden's subcontractor, but unemployment is now projected to rise to 7 percent. It is clear now that the worsening world economy and trade turmoil have contaminated the world economy, Germany's economy above all, and so it is slowed down in the Swedish. In particular, exports of goods have decreased.

But the finance minister is also clear that the deteriorating economy in the country's municipalities is not just about the economy. The 40s are starting to reach their 80s and it will cost the municipalities more money to help them.

Contradictory enough, the Finance Minister's analysis also stands out in a particular issue in comparison with other analysis institutions. The Ministry of Finance calculates coldly with the help of the Riksbank with minus interest rates in 2021 and 2022. It will be interesting what the Riksbank and Stefan Ingves think about this analysis. They are still tracking zero interest rates.