Riksbanken is still convinced that old truths still apply. Despite the fact that there is a new world economy. An example of the new economy is how multinational companies have relied on their slim warehouses which is a result of Just In Time (JIT).
In my opinion, Riksbanken is guaranteed to raise the policy interest rate on September 21, 2023 by 25 basis points only to do the same thing again on November 23, 2023. Unfortunately, experience shows that this measure will not strengthen the Swedish krona, but will accelerate the negative spiral that Sweden is in.
The image of Sweden has deteriorated in recent years with daily explosions and shootings that in some cases have hit third parties. This has contributed to the fact that the world's confidence in Sweden has plummeted and thus also the Swedish krona.
Instead, the Swedish government should take control of the financial system and try to improve the image of Sweden in the outside world in order to increase confidence in Sweden and, by extension, the Swedish krona. However, this will be a long and arduous road for the small Swedish currency.
Among other things, the Swedish government can communicate that the Swedish banks are well managed and prosperous.
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