Posted by WARREN MOSLER on January 19th, 2012
The do have their own currency, last I checked.
Sweden Should Sell More Bonds to Tap Foreign Demand, SEB Says
Jan 19 (Bloomberg) — Sweden should borrow more to take advantage of demand and increase investments in the largest Nordic economy, SEB AB Chief Economist Robert Bergqvist said.
The Nordic region has emerged as a haven as European leaders struggle to contain a sovereign debt crisis now in its third year. Swedish 10-year bonds are trading at a yield of 14 basis points less than benchmark German debt as of 10:56 a.m. in Stockholm.
“If you look at other countries in Europe that now must save money, cut budget deficits and bring down government debt, in Sweden we can make investments for the future, so I hope the government is using this very nice situation to borrow money to make investments in infrastructure, education,” Bergqvist said in an Jan. 17 interview Stockholm. “This would strengthen the Swedish position in the long term.”
Some foreign investors are concerned about the level of liquidity in the market, he said. “They want to see more government debt.”