“REFLATION” IN SWEDEN

Nelson Evening Mail, Volume LXVI, 11 March 1933, Page 10

“REFLATION” IN SWEDEN

ANOTHER ATTEMPTED SOLUTION Proposals which show that the Socialist Government of Sweden has accepted the advice of the younger school of expansionist economists, who hold that the trade depression has now reached a point where only an impulse from the State can set the wheels of economic machinery revolving again, were outlined in the Budget for the fiscal year beginning on Ist July, 1933, which was submitted to the Riksdag recently. The Government proposed expenditure on public works for two reasons, first, to alleviate unemployment, nnd, secondly, to break the vicious circle of the depression by infusing fresh purchasing power into the Swedish economic system. If this should lend to increased imports the Government proposes to take restrictive actio'.' where necessary, so as to protect the currency. The Budget is the highest ever submitted since the post-war “boom” years. An increase in estate duties is to he earmarked entirely as (unking fund for a short-term. loan of 160.000,000kr. (£8.860,000), which is to bo floated to finance public works, such as schools, hospitals, drains, public baths* roads, etc. “If the rofiationist programme of the Government is to succeed. it- presupposes the full co-operation of (lie Riksbank.” the Stockholm correspondent of “The Times” wrote. “Unless the Central Bank is prepared (o buy Government, bonds to a greater extent than hitherto, the new loans will force tip the price of money in Sweden, am) the plans of tlre Government will thereby lie rendered vain.”