It is in a detailed interview with Bloomberg that Hans Sterte goes for a blast of his nation’s, alledgedly, flawed economic policy cornerstones.
All powers to parliament
“The powers of the Riksbank should be taken back by parliament so that both fiscal and monetary policy should be managed from there,” says Hans Sterte to Bloomberg.
Personally he clearly believes that fiscal policy – the state budget – should be relaxed from today’s steady surplus target, in light of the fact that the state debt has come down to about 35 percent of GDP. Monetary policy, however, could be tightened through higher interest rates to give households incentives to cut debt.
“But that’s only up to the parliament to decide,” says Hans Sterte.
He expects this debate to get traction in about five years.
“Swedish assets are on sale”
According to Hans Sterte the present state of lacking policy coordination is hurting the nation badly, through the weakness of the krona which has resulted from low central bank interest rates.
“Our purchasing power is eroding and that is not the way for a country to grow rich,” he says to Bloomberg.
“In reality, Swedish assets are on sale. We see that in the property market, where foreign investors are bargain hunting.”