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Pessimism and debt worries jeopardising stability in Europe and the US


In the latest edition of the ”The Global Economy” monthly newsletter, Swedbank’s Economic Research Department writes that renewed economic pessimism and increased debt worries are jeopardising financial and political stability – especially in Europe and the US. In this situation, it is very important that policymakers use the right tools.

“Although the risk of a new recession has increased, it still is not part of our main scenario,” emphasised Swedbank’s chief economist Cecilia Hermansson.

The right measures to address the crisis do not include trying to create inflation or raising tariffs – even though such measures are being suggested and in some cases implemented, according to the report.

“What is needed instead are more, and more extensive, structural reforms, and for certain countries, additional stimulus,” Cecilia Hermansson said.

Read the full report in Swedbank’s Newsroom.

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