Paying for Sweden’s Migrant Inflow

The video discusses Sweden's economic response to the refugee crisis, highlighting the significant impact of fiscal stimulus on economic growth and employment. It compares the effectiveness of fiscal and monetary policies, emphasizing the larger multiplier effect of fiscal measures. The discussion also covers the challenges of managing currency appreciation and inflation, and the need for long-term structural reforms to sustain growth. The video suggests that Sweden's approach could serve as a model for other European countries, advocating for a shift towards more fiscal policy interventions.

What was the impact of the refugee influx on Sweden's economy?

• It resulted in a decrease in fiscal stimulus.

• It led to a recession.

• It had no noticeable impact.

• It caused a significant economic boom.

How does the multiplier effect of fiscal stimulus related to refugees compare to traditional infrastructure spending?

• It is larger than infrastructure spending.

• It is smaller than infrastructure spending.

• It is about the same as infrastructure spending.

• It has no effect on the economy.

What is the Riksbank's main concern regarding the krona?

• The krona is appreciating too quickly.

• The krona is depreciating too quickly.

• The krona is losing its value internationally.

• The krona is stable and not a concern.

What fiscal measure did the Swedish government announce to support municipalities?

• A temporary tax cut.

• A permanent increase of 10 billion kronor per year.

• A reduction in public sector jobs.

• A decrease in fiscal stimulus.

What is the suggested approach for European countries based on Sweden's experience?

• Focus solely on monetary policy.

• Increase interest rates.

• Adopt more fiscal measures.

• Ignore fiscal and monetary policies.

What is a key concern about Sweden's fiscal stimulus approach?

• It is not discretionary enough.

• It is too focused on long-term growth.

• It is too reliant on infrastructure projects.

• It lacks structural reforms.

What is the effect of fiscal stimulus on Sweden's budget balance?

• It led to a budget deficit.

• It improved the budget balance.

• It had no effect on the budget balance.

• It worsened the budget balance.