Counteracting the effects of the global financial crisis
When I have opened my daily newspaper in recent months the headings have often concerned crises, stock market collapse and economic downturn. The contagion effects of the US mortgage crisis that have been around since summer last year, have taken on proportions hardly anyone expected. In mid-September the international financial turbulence entered its most intensive phase so far. The global financial system has since then been shaken to its foundations and even countries like Sweden – far from the centre of the crisis – are tangibly affected.
The Riksbank’s main tasks are to safeguard financial stability and price stability. To manage these we are now continuously taking various measures to counteract the effects of the financial turbulence on the Swedish economy. Other authorities, the Government and the Riksdag have also implemented measures to the same end.
One thing I have learnt from the years I have worked with managing financial crises is that things can change rapidly. Each situation is unique and must be dealt with on the basis of the conditions prevailing there and then. Although Sweden has long been on the periphery of the turbulence in the financial markets, we are now more strongly affected. When the situation requires it, we must be flexible and act both quickly and powerfully. This is the way we have tried to work so far, and we will continue to do so as long as necessary.