“Inflation is dead”

imagesIn practice, inflation is dead in Sweden, which means that the central bank, the Riksbank, should act more forcefully, Anders Borg, the former finance minister, has said in an interview with business weekly Affärsvärlden.

He warned that Europe faces a long period of stagnation; price pressure will remain low as a result of a weak banking system, rapid digitalisation and globalisation.

Borg also said that irrational currency movements were to be expected as a result of zero interest rates, and that this was “extremely dangerous for export-dependent countries such as Sweden”.