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> Sweden only let one of its smaller banks go bankrupt See, eg. http://www.nytimes.com/2008/09/23/business/worldbusiness/23krona.html http://www.nytimes.com/20
by jpdoctor 15y ago
> Sweden only let one of its smaller banks go bankrupt
See, eg. http://www.nytimes.com/2008/09/23/business/worldbusiness/23krona.html http://www.nytimes.com/2008/09/23/business/worldbusiness/23k... , note the term "series of bank failures."
As for QE: Note there was a devaluation imposed by the exchange rate, and the peg evaporated. So you are correct that Riksbank did not print, but the QE was achieved by the currency markets.
- effn 15y agoNope, NYT is wrong on that one. I suspect they are referring to the implosion of the real estate sector which brought down a number of companies, but none of them where banks. QE is a word with a specific meaning, it's not just a synonym for "stimulus". It refers to the buying of financial assets by the central to increase their value, and/or to increase the money supply. Ending a currency peg has nothing to do with that. Note that the bailout operations that did take place did so after the end of the peg.