Businessweek Archives


International Outlook: Global Wrapup


The Swedish government's decision to hike interest rates a stunning 6 percentage points, to 17.5%, in early December shows that Prime Minister Carl Bildt is committed to a painful, tight-money restructuring of the troubled economy. His immediate goal was to scotch rumors that the krona might be devalued. In the weeks after the 12.3% devaluation of the Finnish markka in November, an estimated $4.3 billion in flight capital left Sweden. Bildt also wants to show his own industrialists and the European Community that he will take tough measures to curb 8% inflation and bring Sweden's productivity in line with the EC -- rather than go the easy devaluation route. He will likely follow the rate hike with a new budget in January that, among other cuts, clamps down on Sweden's cherished health and child care benefits.EDITED BY STANLEY REED

Race, Class, and the Future of Ferguson

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

blog comments powered by Disqus