• 28 Posts
  • 10 Comments
Joined 2 years ago
cake
Cake day: June 10th, 2023

help-circle



























  • They could do it because we were a small currency, and it it didn’t quite work, at least not the way it worked before. The currency is now “floating” against other currencies which it wasn’t back then, and we had a recession at the time. I agree that Sweden would be giving up a few tools in the economic toolbox, but on the other hand it gains a few others. I can’t say which ones are more valuable because I’m not an economist. I suspect you’re not either.



  • The government has to balance the budget anyway, and devaluing your currency is a bit like peeing your pants. It’s nice and warm for a bit and then increasingly uncomfortable.

    Inflation goes up, you see capital fights because you’re not a reliable currency, you increase your national debt, and you instantly make the entire population poorer than their neighbor countries.

    So while there are some benefits, most economists argue against it.

    I can’t say if Sweden going for the Euro is good or bad for Sweden, and there’s a paradox in asking people about it, because if the SEK is weak then support goes up, but it’s a bad time to join because of the low value, but if the SEK is strong then support goes down, although we’d be in a much position to join.