Sweden: Selected Issues

This Selected Issues paper on Sweden analyzes possible adjustments to the fiscal framework that the authorities may wish to consider. The paper starts with a brief description of Sweden's fiscal framework, followed by an assessment of the framework's strengths and weaknesses. The scope for stabilization policy in Sweden is analyzed. The paper describes the Johansson commission's recommendations and puts forth alternative options. A strategy that would entail marginal adjustments to the framework is also proposed.
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Volume/Issue: Volume 2002 Issue 160
Publication date: August 2002
ISBN: 9781451835946
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Business and Economics , Labor , Economics- Macroeconomics , Public Finance , ISCR , CR , sick leave , sickness benefit , disability retirement , sickness , sick leave compensation , expenditure ceiling , sickness compensation system , surplus target , sickness absence behavior , Automatic stabilizers , Output gap , Budget planning and preparation , Global

Summary

This Selected Issues paper on Sweden analyzes possible adjustments to the fiscal framework that the authorities may wish to consider. The paper starts with a brief description of Sweden’s fiscal framework, followed by an assessment of the framework’s strengths and weaknesses. The scope for stabilization policy in Sweden is analyzed. The paper describes the Johansson commission’s recommendations and puts forth alternative options. A strategy that would entail marginal adjustments to the framework is also proposed.