Finanspolitiska rådet

Finanspolitiska rådet
Box 3273, SE-103 65 Stockholm
Visit: Kungsgatan 12-14, Sweden

Phone:+46 8 453 59 90


Fiscal Policy and Labour Market Reforms
Fiscal policy is facing difficult challenges over the coming decades because of an aging population. For this reason fiscal sustainability has risen to the top of the political agenda in most western countries. One strategy for coping with the challenges ahead is to limit public debt through strict fiscal policy rules. Another is to implement large-scale labour market reforms in order to ensure high employment. Both these roads are being followed by Sweden. This raises a number of questions: What long-term targets are appropriate for government debt? How should stabilisation policy be conducted in an economy subject to tight fiscal policy rules and in times of large-scale structural reforms? To what extent do the Swedish labour market reforms contribute to higher employment?

At the conference, prominent international researchers analysed the principles of good fiscal policy. The speeches were based on work commissioned by the Swedish Fiscal Policy Council. The aim of the conference was to contribute to a well-informed debate on fiscal policy in Sweden. ProgrammePDF


Alan Auerbach, "Long-Term Objectives for Government Debt" PaperPDF SlidesPowerpoint
Comments by Kjetil Storesletten SlidesPowerpoint

Roel Beetsma, "A Survey of the Effects of Discretionary Fiscal Policy" PaperPDF SlidesPowerpoint
Comments by Lars E O Svensson SlidesPowerpoint

Frederick van der Ploeg, "Prudent Budgetary Policy with Uncertain Revenues, Investment and Labour Market Reforms" PaperPDF SlidesPowerpoint
Comments by John Hassler SlidesPowerpoint

Jörgen Elmeskov, "The Speed with which Labour Market Reforms Work - Lessons from International Experience" SlidesPowerpoint

Anders Forslund, "Den svenska jämviktsarbetslösheten - en översikt" (Equilibrium Unemployment in Sweden — an Overview) PaperPDF SlidesPowerpoint
Comments by Bertil Holmlund SlidesPowerpoint