Sweden and the SEK – 9.35 old normal 8.35 in new normal
There has been a multitude of under-capitalised public finances and growing public debt ever since the EMU was formed. This is of course one of the key reasons for why Europe is in its current state, and for the sagging confidence in the euro. It is reasonable that the balance of power on the foreign exchange market has generally shifted to the advantage of the SEK, when comparing with other types of key indicators such as growth, inflation and the trade balance. It is therefore reasonable to assume that the shift in the SEK level versus the EUR is more permanent than transitional.