the Society is closing down, companies laying off and the event is cancelled. Coronavirus is putting their imprint on the society as a whole. That it is to the community economically, there is no doubt about that, but as long as it is not possible to predict what the overall cost will be.
“ It’s essentially impossible to speculate about it, because no one knows how the situation will develop. Such a calculation would not have any credibility to this day. However, it is clear that measures are needed at the same time as the income to the society is decreasing, “ says Lars Calmfors.
to be expensive. At the beginning of march, the government wrote down the GDP growth forecast by 0.3 per cent in relation to the coronavirus. During the 90’s crisis, which lasted from 1990 to 1994, GDP fell sharply for three consecutive years (1990 to 1993). The case ended up in a total of three to five per cent. Lars Calmfors argues that such a development is not to be ruled out.
“ It could very well be a decline in GDP of that magnitude. However, a possible difference compared to the 90’s crisis, is that the decline is more concentrated, instead, in order to then draw it out over a number of years, “ he said.
He notes that this finding is very much in doubt. It all depends on whether the economy could avoid a wave of bankruptcies and what are the implications of financial sector experience.
the prerequisites, to get out of the situation fairly well. At the very least, if you compare it with other countries. Sweden’s central government debt at 35 percent of GDP to make the room available is a good thing, at the same time, the exceptional nature of the situation changes, which are usually classified as negative, should not be regarded as a breach of the fiscal framework.
“ We have a very different fiscal policy’s room for manoeuvre than in many other countries, such as Italy, which has a public debt at 130 per cent of GDP. It is quite possible for us to have large budget deficits for several years, and a significant increase in the debt ratio if necessary.
He said that the company ends up in crisis, needing urgent assistance with an emergency liquidity assistance in order to survive. However, it is not good enough.
“ the Firms in the exposed sectors will also need more direct support in the form of tax cuts or grants that don’t have to lay off staff on a large scale, and in the end may fail.
“ yes, Yes, there is a health warning at the highest level of a financial crisis. Just like they were during the 90’s crisis and the financial crisis, the focus is on economic policy. It may not stop the financial crisis, but it can mitigate it.
for more information: Magdalena Andersson, the Uncertainty of the new coronavirus has increased to.
