I originally wrote about the Swedish Model in September and I even sent more detailed copies to the Federal Reserve hoping they would act quickly. It went like this:
To Whom It May Concern:
I am writing this letter with regards to the current banking crisis. As you likely know there is precedent for the issues we are currently facing. Not only did Japan enter a similar deflationary period in 1991, but Scandinavia entered an even more similar period around the same time. I have attached the contact info and a paper with a descriptive response to the issue by Arne Berggren. I hope you will forward this message to the appropriate sources as it contains brilliant insight into a situation that is very similar to our current predicament. And please thank the board for their hard work during these trying times. https://www.fdic.gov/bank/historical/managing/sym1-09.pdf
I was shocked to receive a prompt response:
Thank you for your observations and comments regarding current strains on the U.S. financial system. Healthy economic growth depends on well-functioning financial markets. Consequently, helping the financial markets to return to more normal functioning will continue to be a top priority of the Federal Reserve.
Again, we thank you for sharing your views. Please be assured that the Federal Reserve is working diligently to find and implement the best and most sustainable solutions to the current economic challenges.
SKS, Board Staff
I have to admit – I was reassured by the friendly and prompt response. If only it hadn’t taken them 5 months to take the Swedish model seriously….