Monopoly has become the "exchange rate versus housing price shell game!"
Central Bank Shell Game: What Sweden’s Negative Interest Rates Do to Consumers
by Nick Kamran • Mar 19, 2017
Next: higher rates or currency crisis?
By Nick Kamran – Letters from Norway:
Sweden’s welfare state supposedly allows for success while providing a safety net for those unable to keep up with the market. In principle, it is an ideal, utopian-like state. However, Sweden’s touted economic success has come at the expense of its currency, the Krone (SEK), and long-term sustainability. Riksbank, the Swedish Central Bank, like its European contemporaries, has undertaken experimental policy, driving real and nominal interest rates below zero.
Not All Growth is Equal
Since 2014, Swedish deposit rates have been negative. Not only has overall negative real interest rate policy affected housing, but it also drove Swedish consumers deeper into debt.