Sweden have cut interest rates to zero percent.
Is this brave or reckless.
The decision is apparently a reaction to falling prices and lower than target inflation, but this strategy is completely untested. So step forward Sweden, you are now an economic case study and we will watch this experiment with interest (although punily a much higher level of interest than you have).
The problem now is Sweden has rolled the dice, if this doesn't work they have pretty much painted themselves into a corner and getting away from zero percent interest in the future if the economy doesn't take off will adversely effect the problematic inflation rate.
So.........
Roll up, roll up, it's the great Krona conundrum, Free Money, get your super cheap Swedish credit here, we're gonna spend our way out of this crisis, after all what harm has cheap credit ever done......
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