ABSTRACT
All shades of opinion in Sweden were united in recognizing the need for drastic measures to prevent dangerous fluctuations in the value of the country's currency. In Sweden it is usual for entrepreneurs to finance replacement and new investment by means of bank loans which they later pay off out of the proceeds of debenture issues. At a time when producers are full of uncertainty regarding the trend of short-term rates, it is manifestly out of the question to control the long-term rate through the discount rate. The Swedish budget draws a distinction between ordinary or current expenditure and expenditure on additions to national assets. The Bank of Sweden is a publicly owned institution: its profits appear separately in the budget accounts and are not included with Income from Public Enterprise. The national income of Sweden increased from 6,350 million to 7,200 million kronor between 1932 and 1934.
