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I'm kind of expecting to see a chain reaction happening next.. - Housing falls - Investors sell - Stock drops - SEK value drops (We are here) - Import pric
by tmikaeld 9y ago
I'm kind of expecting to see a chain reaction happening next..
- Housing falls
- Investors sell
- Stock drops
- SEK value drops (We are here)
- Import prices goes up
- Goods prices goes up
- Less people are wiling to buy goods due to risk
- Wages go down
- People are let go
- Fewer people are willing to buy goods
- and so on..
- jordanb 9y agoYour chain breaks at "less people willing to buy goods due to risk". SEK going down will push the costs of imports up. It will also make Swedish exports more competitive. Imports being more costly will cause Swedish consumers to substitute imported goods with local alternatives. The net will be that wages will go up and unemployment will go down. This is good. But the price of goods will become dear to the Swedish consumer and this is bad. And there's a possibility of a wage/price spiral driving up inflation.
- tmikaeld 9y agoGood point!