US can learn from Sweden's banking crisis
A new research paper prepared for the US congress draws lessons for the US from Sweden's banking crisis in the early 1990s.
The paper points out that the Riksbank, faced with a banking and exchange-rate crisis, separated good from bad assets, which were nationalised and placed in a separate agency with broad authority to work out debt problems or to liquidate assets.
The author presents four lessons from Sweden's experience:
· the process must be transparent;
· the resolution agency must be
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